Lagnam Spintex stock skyrockets 10% on announcement of expansion project worth Rs212cr

17 Jan 2022 , 11:29 AM

The Board of Directors of Lagnam Spintex Ltd has approved Capital Expenditure of Rs212cr on expansion project of 41,472 spindles of 100% compact cotton yarn at the existing unit situated at Bhilwara, Rajasthan.

As per regulatory filing, the company’s existing capacity is 1920 Nos. rotors having production capacity of Approx. 16.5 tonnes cotton yarn per day and 25,536 Nos. Spindles having production capacity of Approx. 18.6 tonnes cotton yarn per day.

Further, the existing capacity utilization is more than 95% and the company now proposes to add capacity of 41,472 Nos. Spindles having production capacity of Approx. 34.35 tonnes cotton yarn per day.

The investment for capacity expansion will be required at an outlay of Rs212cr which would be financed through term debt and internal accruals.

“The capacity addition is proposed to meet increasing demand, entry to new markets & product mix, to meet new customer base, to bring competitive cost advantage and to meet gain of competitive advantage”, siad company.

At around 11:30 AM, Lagnam Spintex was trading at Rs90.45 per piece higher by 9.97% on the NSE platform.