Tata Metaliks rose 2.73% to Rs 605 at 10:37 IST on BSE after the company said its board reviewed and discussed the opportunities for growth through capacity expansion at its existing plant in Kharagpur and consequent funding options.
The announcement was made after market hours yesterday, 27 February 2019.Meanwhile, the S&P BSE Sensex was up 122.24 points, or 0.34% to 36,027.67.
On the BSE, 2729 shares were traded in the counter so far compared with average daily volumes of 5158 shares in the past two weeks. The stock had hit a high of Rs 610.05 and a low of Rs 600 so far during the day. The stock hit a 52-week high of Rs 884 on 12 April 2018. The stock hit a 52-week low of Rs 545 on 11 October 2018.
Tata Metaliks' board approved capacity expansion of ductile iron (DI) pipe capacity by 2 lakh tonne per annum (LTPA) and hot metal capacity by 0.7 LTPA. The capacity will be expanded by March 2022 with an investment of Rs 555 crore. Further, the board also approved issuing 29 lakh equity shares and 36 lakh convertible warrants to promoter, Tata Steel, on preferential basis. The proposed funding will help in funding the expansion project and also strengthen the balance sheet, the company said.
Net profit of Tata Metaliks declined 1.78% to Rs 39.63 crore on 11.53% rise in net sales to Rs 546.37 crore in Q3 December 2018 over Q3 December 2017.
Tata Metaliks, a subsidiary of Tata Steel, has its manufacturing plant at Kharagpur, West Bengal, India which produces pig iron and ductile iron pipes in India.
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