Pitti Engineering Limited updates on expansion project

Pitti Engineering Limited ("Company") had earlier decided to increase its capex plan to Rs. 270 Crores for expansion of existing facilities / green field pojrect to be undertaken by the Company directly, or through a wholly owned subsidiary in a phased manner, to be completed in a span of 36 months; and incorporation Pitti Rail and Engileering Components Limited as a wholly owned subsidiary of the Conrpany (the "WoS").

The Company has been evaluating various proposals which includes setting up of green field projects in various states. Accordingly, the WoS made an application for setting up a "Mega Project' in the State of Andhra Pradesh in Kadapa District under the Industrial Incentives Policy 2020-23 and in this regard, requested the Government of the State of Anrdhra Pradesh for customised incentives for making the project viable.

The Government of the State of Andhra Pradesh Industry and Commerce Department vide G.O.MS.No. 56 dated July 15, 2021, has extended a special package of incentives to the WOS which includes allotment of 117.85 acres of land to the unit in YSR Jagananna Mega Industrial Hub, Kopparthy, YSR District, at a concessional rate (being early bird anchor units as per YSR Jagananna Mega Industrial Hub Policy with a cap of 100% Fixed Capital Investment) subject to the unit investing Rs. 401 Crores and achieving committed employment of 2000 by April 2024 (the "Incentive Grant").

Given the current business scenario, the Company is currently reviewing the feasibility of undertaking expansion of its existing manufacturing facilities and accordingly, will be reviewing the viability of setting up the green field project in the State of Andhra Pradesh pursuant to the Incentive Grant.

Shares of Pitti Engineering Ltd was last trading in BSE at Rs.149.65 as compared to the previous close of Rs. 148.05. The total number of shares traded during the day was 80258 in over 1177 trades.

The stock hit an intraday high of Rs. 152.5 and intraday low of 147. The net turnover during the day was Rs. 12041353.

Source : Equity Bulls

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