Kitex Garments surges near 3% after board updates on expansion plan in Telangana

The Board of Directors decided to incorporate a new subsidiary company in the state of Telangana with an initial investment of Rs750cr.

Oct 05, 2021 12:10 IST India Infoline News Service

Kitex Garments Ltd at their meeting has approved the expansion plan in the state of Telangana.

The Board of Directors approved the investment proposal of Rs2,406 cr and the said investment is planned in Kakatiya Mega Textile Park, Warangal (Rs1,113cr) and in Industrial Park, Sitarampur, Rangareddy District (Rs1,293cr). 

Further, the Board of Directors decided to incorporate a new subsidiary company in the state of Telangana with an initial investment of Rs750cr wherein 70% of initial investment will be invested by the Company and balance 30% will be invested by Kitex Childrenswear Ltd, said company in a regulatory filing.

The Board also noted that the decision on source of funds for the investment plan will be made based on the detailed project report of Ernst & Young (EY).

At around 12:23 PM, Kitex Garments was trading at Rs174 apiece up by Rs4.45 or 2.62% on the BSE.

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