Board approved the issuance of equity shares and convertible warrants to promoter.
Shares of Tata Metaliks rose 3.5 percent intraday Thursday as company is going to spend Rs 555 crore for the expansion plan.
The company in its board meeting held on February 27, approved capacity expansion of DI Pipe unit from 2.0 LTPA to 4.0 LTPA along with augmentation of the Mini Blast Furnace capacity and installation of a new 15 MW Power Plant.
With this expansion, the product mix of DI Pipes would be enhanced up to 1200 mm diameter pipe.
The board also reviewed the financial strategy of the company and approved the issuance of equity shares and convertible warrants to promoter, i.e. Tata Steel Limited on a preferential basis, in accordance with applicable laws, regulations, consents and approvals (as required).
The board in its meeting reviewed and discussed the opportunities for growth through capacity expansion at its existing plant in Kharagpur and consequent funding options, company said in BSE filing.
At 11:04 hrs Tata Metaliks was quoting at Rs 603.35, up Rs 14.40, or 2.45 percent on the BSE.
The share touched its 52-week high Rs 884.00 and 52-week low Rs 545.00 on 12 April, 2018 and 11 October, 2018, respectively.
Currently, it is trading 31.56 percent below its 52-week high and 11.01 percent above its 52-week low.
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