225% Dividends Latest: Steel Company Raises Rs 200 Crore In QIPs; Stock Rallied After 2-Straight Days Selloff

Iron & Steel Products maker, Goodluck India soared after two-consecutive days of selloff. On January 18, when markets were trading lower, Goodluck shares travelled in the opposite direction and skyrocketed by 5.4% on BSE overall. The company raised to Rs 200 crore through a Qualified Institutional Placement (QIP) round.

On BSE, Goodluck shares ended at Rs 1,132.45 apiece, up by Rs 53.80 or 4.99% with a market cap of Rs 3,211.20 crore. Goodluck is a pecialised engineered steel products manufacturer catering to automobile, aerospace, oil & gas, T&D, defence, solar and overall infrastructure space.

M.C. Garg, Chairman of Goodluck India, said, "The recently concluded round of fundraising is well in line with the company's growth strategy".

As per the statement, the company's Board approved the issue and allotment of 21,27,659 equity shares to Qualified Institutional Buyers (QIBs) at an issue price of Rs. 940 per share at a premium of Rs 938 per share.

Further, the company proposes to utilise the proceeds from the issue to fund its working capital requirements and for general corporate purposes. It plans to utilise Rs 150 crore of the net proceeds towards its further estimated working capital requirements.

The offering received interest from marquee investors, including BOFA Securities Europe SA-ODI, Société General - ODI, Morgan Stanley Asia (Singapore) Pte, NAV Capital VCC - NAV Capital Emerging Star Fund and Ananta Capital Ventures Fund 1, among others.

Meanwhile, recently, the company also floated a wholly owned subsidiary, Goodluck Defence and Aerospace Private Limited, which will cater to the extensive needs of the Defence & Aerospace Industry. Towards this, the company will set up a dedicated manufacturing facility for specialised steel and alloys, at an estimated investment of around Rs 216.50 crore. The company also reported an 8.9% growth in total revenue to Rs 1744.01 crore in the first six months of this fiscal from Rs. 1601.51 crore in the same period of the previous year. EBITDA was up by 44.3%, to 141.76 crore in H1FY24 against 98.27 crore in H1FY23. PAT stood at Rs 63.29 crore in H1FY24 as against 40.59 crore in H1FY23, up by 55.9%.

Goodluck is engaged in manufacturing and exporting precision engineering steel, a wide range of speciality Engineering structures, Precision/Auto Tubes, Forging for Defence & Aerospace, CR Products and GI Pipes. The products are being used worldwide by end-customers like automobile manufacturers, infrastructure, engineering industries, Defence, Aerospace, Oil & Gas industries etc.

The exemplary products and services have enabled the Company to bridge geographical bounds and register a strong presence in 100 countries across the globe with a well-knit global network. Headquartered in Ghaziabad with a manufacturing capacity of 4,12,000 MT per annum, Goodluck India has manufacturing facilities at Sikandrabad in Uttar Pradesh and Kutch, Gujarat.

Notably, Goodluck is among dividend-paying stocks and has a hold strong track record rewarding the same for the past five years. In the last 12 months, the company paid up to 225% amounting to Rs 4.5 per share. Currently, its dividend yield is at 0.4%.

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