Nitin Spinners rose 2.89% to Rs 16 at 14:17 IST on BSE after the company said it has achieved financial closure for term loan of Rs 200 crore from banks for expansion project of spinning and knitting facilities at a project cost of Rs 286 crore.
The announcement was made during trading hours today, 13 January 2014.
Meanwhile, the S&P BSE Sensex was up 278.64 points or 1.34% at 21,037.13.
On BSE, so far 22,000 shares were traded in the counter as against average daily volume of 56,578 shares in the past one quarter.
The stock was volatile. The stock surged as much as 7.39% at the day's high of Rs 16.70 so far during the day. The stock hit a low of Rs 15.55 so far during the day. The stock had hit a 52 week high of Rs 18.44 on 19 December 2013. The stock had hit a 52-week low of Rs 8.75 on 22 March 2013.
The stock had outperformed the market over the past one month till 10 January 2014, surging 18.79% compared with the Sensex's 2.34% fall. The scrip had also outperformed the market in past one quarter, galloping 51.56% as against Sensex's 2.4% rise.
The small-cap company has equity capital of Rs 45.83 crore. Face value per share is Rs 10.
Nitin Spinners said that the expansion project of spinning and knitting facilities at project cost of Rs 286 crore is being financed through term loan of Rs 200 crore and internal accruals of Rs 86 crore. The company has achieved financial closure for term loan of Rs 200 crore from banks.
Nitin Spinners said that the term loans are eligible for Interest Subsidy under Technology Upgradation Fund Scheme (TUFS) of Central Government and Interest Subsidy & other incentives under Customized Package for Textile Sector of Government of Rajasthan. The orders for main Plant & Machinery have been placed and building construction work is going on as per schedule, it said. After implementation of the expansion project the existing production capacity of the company shall increase nearly by 75%, Nitin Spinners said in a statement.
Nitin Spinners' net profit surged 82.7% to Rs 9.06 crore on 8.6% growth in net sales to Rs 119.67 crore in Q2 September 2013 over Q2 September 2012.
Nitin Spinners is engaged in the textiles business. The company's range of products are used to manufacture products, such as apparel and garments, under garments, terry towels, woven fabrics, home furnishings, carpets, denim, industrial textiles, medical textiles and socks.
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