Graphite India plans share float

Graphite India is planning to issue securities for funding its capital expenditure. K K Bangur, chairman, said the company was raising resources to fund its greenfield and brownfield expansion plan.

In an intimation to stock exchanges, the company has stated that a meeting of the board would be held on August 26 to consider issue of securities.

The company plans to increase the capacity of its German operations from 10,000 tonne to 20,000 tonne, while the capacity expansion project "" to raise capacity of graphite products to 60,000 tonne "" was nearing completion.

The additional module of 20,000 tonne would raise the production capacity of Durgapur plant from 14,000 tonne to 34,000 tonne.

The project was scheduled to commence commercial production shortly. The expansion at Durgapur cost around Rs 160 crore.

Graphite acquired assets concerning production of graphite electrodes, coating of electrodes and speciality business units of Conradty group (which was under liquidation) in Germany in August 2004 from the insolvency administrator.

Since acquiring management control, the company has re-commissioned the closed graphite electrode production and has put in place a revival plan to turnaround the German operations, renamed as Graphite Cova GmbH. The company expects top line to grow by around Rs 450 crore this financial year.