Graphite India seeks shareholders’ nod to raise Rs 5,000 crore

2019-06-15

Jun. 14, 2019 - Electrode maker Graphite India Ltd. has sought shareholders’ approval to raise up to Rs 5,000 crore to meet the company’s resource requirements, including capital expenditure and acquisitions. 

The fundraising will be conducted in one or multiple tranches in the Indian or overseas markets, said a company resolution which was sent to the shareholders.Graphite India did not elaborate on any specific capex plan. 

The carbon and graphite products maker is planning to scale capacity of its Durgapur unit in West Bengal after the closure of its Bengaluru plant following orders of the National Green Tribunal. The Bengaluru plant had an output of 13,000 tonnes and contributed 17.05 percent to the turnover of the company in 2017-18.

Graphite India has said it would reduce bottlenecks at its Durgapur and Nasik plants to cover bridge the production gap created by the closure of the Bengaluru plant. 

Durgapur is the largest producer of electrodes for the company, accounting for around 59 percent of its capacity of 98,000 tonnes. 

On Friday, Graphite India shares rose 0.77 percent to Rs 420.30 apiece on the BSE while the benchmark Sensex shed 0.73 percent to end the day at 39,452.07 points.