GNA Axles Limited approves capex plan of Rs. 400 crores

The Board of Directors of GNA Axles Limited, in its meeting held on 18th October 2024, has approved a Capital Expenditure (Capex) plan amounting to Rs. 400 crores. This investment will be undertaken over the next 3 to 4 years with the aim of expanding and and modernizing the Company's production capabilities.

The Capex will be utilized to enhance capacity in the manufacturing of axle shafts and spindles, enabling greater flexibility in production processes. Furthermore, it will support the modernization of existing facilities to align with advanced manufacturing standards.

As part of its strategic growth initiatives, the Company will also invest in setting up capacities for manufacturing components for Light Vehicles (LV) and Electric Vehicles (EV), reflecting the increasing demand in these segments. In line with its commitment to sustainability, the Company will allocate a portion of the Capex towards renewable energy initiatives, including the establishment of a solar power park for captive power generation, reinforcing its dedication to environmentally responsible operations.

This investment underscores the Company's focus on growth, innovation, and sustainability in a rapidly evolving automotive industry. This capex shall partly be funded by internal accruals and party by debt.

Shares of GNA Axles Limited was last trading in BSE at Rs. 422.75 as compared to the previous close of Rs. 426.40. The total number of shares traded during the day was 14865 in over 868 trades.

The stock hit an intraday high of Rs. 453.50 and intraday low of 405.65. The net turnover during the day was Rs. 6260998.00.

Source : Equity Bulls

Keywords

GNAAxles INE934S01014 CapexPlan Expansion