Kajaria Ceramics Ltd approves further investment in Kajaria Ramesh Tiles Ltd, Nepal

The Board of Directors of Kajaria Ceramics Limited ('the Company') at their meeting held today, commenced at 3.15 p.m. and concluded at 3.35 p.m., have, considered and approved investment by the Company in the revised project cost of Rs. 90.74 crores (i.e. 50% of Rs. 181.49 crores) and the working capital upto Rs. 21.23 crores (i.e. 50% of Rs. 42.45 crores) in Kajaria Ramesh Tiles Limited, Nepal (joint venture company) by way of equity and/or loan and/or bank guarantee and/or standby letter of credit, in one or more tranches, for establishing a manufacturing facility of the said joint venture company, having revised annual production capacity of 5.1 MSM tiles.

In view of growing tile markets in Nepal, it was proposed to establish the Company's manufacturing presence in Nepal by way of investing into the JVC in Nepal on joint venture basis in the equal ratio for putting up a manufacturing facility with capacity of 8 MSM tiles per annum.

However, upon conducting a market study and considering other business factors, the annual capacity of the said manufacturing facility in Nepal will be of 5.1 MSM tiles and the Company will now invest in the revised project cost of Rs. 90.74 crores (i.e. 50% of Rs. 181.49 crores) & the working capital upto Rs. 21.23 crores (i.e. 50% of Rs. 42.45 crores).

Shares of Kajaria Ceramics Limited was last trading in BSE at Rs. 1032.85 as compared to the previous close of Rs. 1042.45. The total number of shares traded during the day was 3757 in over 629 trades.

The stock hit an intraday high of Rs. 1045.55 and intraday low of 1020.00. The net turnover during the day was Rs. 3863116.00.

Source : Equity Bulls

Keywords

KajariaCeramics INE217B01036 Investment Nepal KajariaRameshTiles