Graphite India Ltd's wholly owned subsidiary in Netherlands, Graphite International BV has yesterday signed a definitive Agreement for investment of upto US $ 18.595 mn in multiple tranches in cash in General Graphene Corporation which, on an as converted basis to common stock on a fully diluted basis, would constitute approximately 46% stake in the Company, a US based unlisted company located in Knoxville, Tennessee.
General Graphene is involved in development of Graphene sheets for commercial applications. The investment will be made in multiple tranches based on achievement of agreed milestones in the process of development and establishing manufacturing capabilities for the commercial production of Graphene sheets.
Graphene is a two dimensional sheet of pure carbon structure in a single layer of carbon atoms and though it is chemically identical to both graphite and diamond, it is remarkably different. It is a very versatile material with its key properties being the strongest, thinnest and lightest material known. It is also more conductive, both thermally and electrically, than any other material and known to be corrosion resistant and Impermebble.
Some of the potential applications of this material include Electronics like touch screens; Medicine and bio electric sensory devices; Filtration e.g. Low cost desalination; Composite materials; Energy storage and Aerospace.
The investment in General Graphene is being done with the objective of entering a high technology business with excellent prospects, subject to successful commercial development. The investment does not fall within related party transaction and none of Graphite's promoter / promoter group / group companies have interest in General Graphene Corporation. No regulatory approvals are required.
Lodha Capital Markets Ltd has acted as the financial advisor to the company for this transaction.
Shares of GRAPHITE INDIA LTD. was last trading in BSE at Rs.1012.5 as compared to the previous close of Rs. 988.75. The total number of shares traded during the day was 71103 in over 2563 trades.
The stock hit an intraday high of Rs. 1024 and intraday low of 986.5. The net turnover during the day was Rs. 71530513.