Yasho Industries Limited board approves Rs. 350 crore capex

The Board of Directors of Yasho Industries Limited (the "Board"), at its Meeting held on March 16, 2022 has approved the capital expenditure for new greenfield project for the capacity of 15,500 Metric Tonne per annum at Pakhajan Village, Taluka: Vagra, Dist. Bharuch.

The Company's existing capacity is 11,000 MTPA located at Vapi, Gujrat and the capacity utilization is above 90%.

The estimated capital expenditure towards the new project is Rs. 350 crore (net of taxes). The Company intends to finance the project through a combination of internal accrual and/or external funding, including seeking financial support from the Banks, Capital raised through preferential issue. Decision on specific mode of funding will be made by the Board of Directors at an appropriate time.

The demand for specialty chemicals is growing. The growing focus on China + 1 along with our country's focus on Make in India has provided an opportunity to increase manufacturing capacity.

The company intends to manufacture lubricant additives and rubber chemicals at its new facility where there is still a high dependence on import in the country as well as growing opportunity in international markets to export its products.

Based on the current visibility and estimates, the project is expected to be completed in 18 to 24 months after receival of all necessary governmental clearances.

The time period of about 24 months is assuming that the Company is able to obtain expeditiously all regulatory approvals from appropriate authorities concerned. Any delay in obtaining regulatory approvals or events like the COVID-19 may impact project timeliness.

Shares of Yasho Industries Ltd was last trading in BSE at Rs. 1808.50 as compared to the previous close of Rs. 1724.70. The total number of shares traded during the day was 45945 in over 1079 trades.

The stock hit an intraday high of Rs. 1810.50 and intraday low of 1725.00. The net turnover during the day was Rs. 80801537.00.

Source : Equity Bulls

Keywords

YashoIndustries INE616Z01012 CapitalExpenditure GreenfieldProject Expansion