Sadbhav Engineering (SEL) announced that the board of directors of the company has considered and approved fund raising by way of a qualified institutions placement (QIP) for an amount not exceeding Rs 2.5 billion. The proceeds from the QIP will mainly be used to fund its growth (capex requirement and WC requirement), going ahead.

Commenting on the investment rationale, ICICIdirect said, "SEL remains our top pick in the sector on the back of a strong order book providing revenue visibility, well funded equity for BOT projects portfolio, strong execution track record and better earnings growth.

We maintain our Buy recommendation on the stock with an SOTP based target price of Rs 265 given its strong order book is providing revenue visibility, well funded equity for BOT projects portfolio, strong execution track record and better earnings growth."

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