Ingersoll-Rand surges 5% in weak market on Rs 170-crore capex plan

New plant will not only help secure space for immediate expansion plans but will also fuel future growth prospects, the company said

Shares of Ingersoll-Rand (India) surged 5 per cent to Rs 1,909 on the BSE in Friday's intra-day trade after the company's board approved setting up of a new manufacturing plant in Gujarat to increase the manufacturing capacity of the existing products and also to manufacture new products.

The company said the project requires an investment of Rs 170 crore (plus contingency of up to a maximum of 7 per cent) and the same would be financed from internal accruals.

The company's existing capacity is 10,000 units per month and the capacity utilization rate is 100 per cent. It