Craftsman Automation QIP raises ₹2,000 crore in 2026

QIP closes with final allotment on June 18

Craftsman Automation Limited has closed its Qualified Institutions Placement (QIP) after allotting 22,98,850 equity shares to eligible Qualified Institutional Buyers (QIBs). The allotment was approved by the company’s Fund-Raising Committee on June 18, 2026, the closing date of the issue. The QIP had opened on June 15, 2026, and was positioned as a fundraise of up to ₹2,000 crore. The final allotment price was fixed at ₹8,700 per share. Based on the company’s disclosures, the issue raised an aggregate amount of about ₹2,000 crore. The company said the proceeds are intended to support growth plans and general corporate requirements.

Offer structure: price, premium and discount explained

The issue price of ₹8,700 per share includes a premium of ₹8,695 per equity share over the face value of ₹5. The company stated that the allotment price incorporates a discount of ₹266.13 per share, which is 2.97% of the floor price, in line with SEBI ICDR regulations. The floor price was fixed at ₹8,966.13 per share. The floor price was determined as per the SEBI framework and was linked to the company’s market price prior to the issue. In an earlier communication around the launch, the floor price was described as being at a 3.99% discount to the previous BSE closing price of ₹9,338.65. The company had also indicated it could offer a discount of up to 5% on the floor price, subject to regulations.

Total amount raised and the company’s stated use of funds

Craftsman Automation disclosed that the aggregate amount raised through the issuance is approximately ₹1,999.9995 crore (₹1,99,999.95 lakhs). In the market, the transaction has been widely referred to as a ₹2,000 crore QIP. The company said the funds are intended to support its growth plans and meet general corporate requirements. Separate coverage of the transaction also linked the QIP proceeds to deleveraging and expansion plans. That coverage cited the company’s estimated debt at about ₹5,500 crore and pointed to capacity expansion and incremental working capital needs after record performance. While the company’s formal filing focuses on growth and corporate purposes, the broader narrative around the QIP has been tied to balancing expansion with a lower leverage profile.

Paid-up capital increases after the share allotment

Following the allotment, Craftsman Automation’s paid-up equity share capital increased from ₹11.93 crore to ₹13.08 crore. In share terms, the equity share count rose from 2,38,55,583 shares to 2,61,54,433 shares, with each share having a face value of ₹5. This increase reflects the issuance of 22,98,850 new shares under the QIP. For existing shareholders, such issuances typically expand the equity base and can lead to dilution, depending on the final issue size versus the pre-issue share count. One market note around the QIP referenced an estimated equity dilution of about 8.7% to 9% for the broader fundraise plan. The company’s filing confirms the new share count after allotment, which is the key reference point for post-issue capital structure.

Major institutional allottees disclosed

The company’s disclosure listed several large allottees that received meaningful portions of the total issue size. These included funds linked to HDFC and SBI, and insurance companies. Such allocations are typical in QIPs, which are reserved for institutional participants. Retail investors do not participate directly in a QIP, but they may see indirect effects through changes in the listed share price and the updated number of outstanding shares. The presence of large domestic institutions can also be a signal of the depth of demand at the final price, although the filing does not provide the full book details.

Key QIP details at a glance

Major allottees and their share of the issue

Approvals, filings, and regulatory framework

The QIP was launched pursuant to a board approval dated May 16, 2026, and a special resolution passed by shareholders at an Extraordinary General Meeting held on June 13, 2026. The Fund-Raising Committee fixed June 15, 2026 as the relevant date for the issue. The issuance was stated to be compliant with Chapter VI of the SEBI ICDR Regulations, 2018, and Sections 23, 42, and 62(1)(c) of the Companies Act, 2013. The company also said the Placement Document dated June 18, 2026 has been filed with BSE Limited and the National Stock Exchange of India Limited. These steps are central to how QIPs are executed in India, with pricing bands, eligibility norms, and disclosure requirements governed by SEBI regulations.

Context: FY26 performance and the funding narrative

Separate market coverage around the QIP stated that Craftsman Automation reported a 41.8% jump in FY26 revenue. That coverage also cited FY26 revenue of ₹8,069 crore and net profit of ₹384 crore. The same narrative described the fundraise as part of a plan to reduce debt and fund expansion. While such performance metrics provide context for investor interest, the closing announcement primarily addresses the terms of the allotment and the resulting capital increase. Still, linking the fundraise to capacity scaling and balance-sheet management is consistent with the way manufacturers often structure large institutional raises.

Background: the company’s previous QIP in 2024

Craftsman Automation has also executed a QIP earlier. During the quarter ended June 30, 2024, the company issued 27,27,272 equity shares through a QIP at an issue price of ₹4,400 per share, raising ₹1,200 crore (₹1,20,000 lakhs). The company disclosed that the 2024 proceeds were used for repayment or pre-payment of certain borrowings, acquisition of balance equity shares of DR Axion India Private Limited (a subsidiary), and general corporate purposes. It also disclosed directly attributable costs of ₹19.77 crore (₹1,977 lakhs), adjusted against securities premium, and stated the proceeds were fully utilised during the period under consideration. This history indicates the company has used QIPs as a recurring capital markets tool.

What investors will track after the QIP closure

With the QIP closed and shares allotted, investors typically focus on the updated equity base, the company’s deployment of proceeds, and any subsequent disclosures on capex, debt movement, or working capital changes. Attention may also remain on how the allotment price compares with market price trends after listing of the new shares. Since the Placement Document has been filed with BSE and NSE, the document set will be the primary source for terms and risk disclosures associated with the issue. Any further tranche-based fundraising would depend on shareholder approvals and regulatory windows referenced in earlier authorisations. For now, the June 2026 transaction brings the company close to the ₹2,000 crore fundraise level that was discussed at launch.