Lambodhara Textile announced that the company has entered into an agreement with V R Textiles to utilize their spare capacity of 25,000 spindles for conversion of cotton into yarn.

This will enhance the spinning capacity of the company and will have an impact on the overall performance of the company, it said.

Shares of the company declined Rs 2.55, or 1.62%, to settle at Rs 154.45. The total volume of shares traded was 16,193 at the BSE (Wednesday).