Pokarna, the busniess of producing polished random slabs and tiles, witnessed a rise in share price on Monday after the company's wholly owned subsidiary Pokarna Engineered Stone (PESL) is planning to expand quartz surfaces production capacity by 130% with investment of Rs 3.25 billion in a greenfield facility.
This investment is expected to be completed by June 2018 and PESL would finance this project through a combination of free cash flow/internal accruals (Rs 750 million) and loan facilities (Rs 2.50 billion crore); PESL is in receipt of financial sanction from its lead banker, for the term loan of Rs 2.50 billion, for funding the project. Further, Pokarna’s board has approved extending Corporate Guarantee for the loan facilities to be extended to PESL.
Shares of Pokarna are trading at Rs 1,120, up Rs 91.1, or 8.85% at the Bombay Stock Exchange (BSE) on Monday at 9:49 a.m.
The scrip has touched an intra-day high of Rs 1,120 and low of Rs 1,056.90. The total volume of shares traded at the BSE is 5,181.
Total volume of shares traded on the bourses today was lower by 74.19% to 5,181 compared with 22-day average volume of 20,072.