Mercator shares drop 4% on closure of QIP bid

NEW DELHI: Shares of Mercator declined nearly 4 per cent after its board declared the closure of bids for its qualified institutional placement (QIP).

In a filing to BSE, the company said that it approved an issue price of Rs 40.75 per share, after giving discount of 4.79 per cent, or Rs 2.05 apiece, on the floor price of Rs 42.80 per share.

The company has issued confirmation allocation note for the allocation of 2,50,00,000 equity shares to the QIBs.

The stock declined 3.84 per cent to hit a low of Rs 42.60 on BSE. At this price, the stock was trading at 1.27 times its book value.

The QIP was opened for bids on January 11.

The floor price was decided, based on the pricing formula as prescribed under Regulation 85(1) of the SEBI ICDR Regulations.