Kitex Garments Ltd board updates on expansion plan in Telangana

The Board of Directors of Kitex Garments Ltd at their meeting held today has approved the expansion plan in the state of Telangana.

The Board of Directors approved the investment proposal of Rs. Rs. 2,406 crores mentioned in Government orders G.O.M5.No.20 & G.Q.MS.No.21 dated September 9, 2021. The said investment is planned in Kakatiya Mega Textile Park, Warangal (Rs. 1,113 crores) and in Industrial Park, Sitarampur, Rangareddy District (Rs. 1,293 crores). Disclosure on Government Order has already made to the stock exchanges vide our letter no. KGLJSE/2021-22/SEPTI/07 dated September 20, 2021.

The Board of Directors decided to incorporate a new subsidiary company in the state of Telangana with an initial investment of Rs. 750 crores wherein 70% of initial investment will be invested by the Company and balance 30% will be invested by Kitex Childrenswear Ltd.

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).

Shares of Kitex Garments Ltd. was last trading in BSE at Rs. 167.15 as compared to the previous close of Rs. 166.6. The total number of shares traded during the day was 22171 in over 785 trades.

The stock hit an intraday high of Rs. 168 and intraday low of 164.2. The net turnover during the day was Rs. 3693634.

Source : Equity Bulls

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