Jupiter Wagons raises Rs 403 via QIP route

New Delhi: Jupiter Wagons Ltd on Tuesday said it has raised Rs 403 through Qualified Institutional Placement and the funds raised will be used for funding the company's growth plans.

"Jupiter Wagons... has announced completion of its fundraising exercise through Qualified Institutional Placement (QIP) for an amount of Rs 403 crore," the company, a provider of mobility solutions encompassing rail, road and marine transportation, said in a statement.

The funds raised will be used for funding the company's growth plans which includes setting up of a new foundry at Jabalpur.

"In addition to an increase in backend capacity which will aid production enhancement across multiple business verticals this will also lead to savings on transportation of products from Kolkata foundry to Jabalpur," the statement said.

The QIP has received an overwhelming response from investors like Tata Mutual Fund, HSBC Mutual Fund and Morgan Stanley, the company said.

"The funds raised will be deployed towards expanding capacity, tactfully pursuing backward integration including through inorganic initiatives and for scaling up emerging business verticals.

"This infusion will serve as a growth catalyst by strengthening our core competencies and positioning us favorably amidst tailwind in the mobility industry," company's Managing Director Vivek Lohia said.

Jupiter Group is a manufacturer of railway wagons, passenger coaches, wagon components and castings in the country.