Gujarat Alkalies gains as board approves establishment of new project

The company will establish a project through the engineering, procurement, construction, and management (EPCM) mode at Dahej with a revised cost of Rs405.50cr.

Dec 07, 2018 06:12 IST India Infoline News Service

Shares of Gujarat Alkalies & Chemicals rose 1% intraday on Friday after its board approved a proposal for the establishment of a 10,000MTA (80%) Hydrazine Hydrate Project at Dahej with a revised cost of Rs405.50cr, including Interest during construction (IDC).

"The company is not producing Hydrazine Hydrate at present. Therefore, there is no existing capacity of Hydrazine Hydrate," said Gujarat Alkalies in a press note to the exchanges on Friday.

Accordingly, the company will establish a project through the engineering, procurement, construction, and management (EPCM) mode. "The project, when implemented, will contribute ~Rs300cr in sales at prevailing market prices," the company added.

Gujarat Alkalies "will fund the project cost from internal accruals and the surplus generated from internal operations; need-based gap, if any, shall be met from External Commercial Borrowings (ECB) or rupee term loans," the company added.

Gujarat Alkalies & Chemicals share price is currently at Rs544.30, up Rs3.75, or 0.69%, from its previous close of Rs540.55 on the BSE.

The scrip opened at Rs543.10 and has touched a high and low of Rs549.10 and Rs539.05, respectively. So far, 40,550 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs3,969.80cr.

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