AIA Engineering to expand capacity through greenfield / brownfield plant

AIA Engineering Ltd has announced that the Board of Directors of the Company at its meeting held on October 31, 2006, inter alia, has approved the expansion plans of the company involving a Greenfield / Brownfield plant for manufacture of High Chrome mill Internals with an Installed capacity of around 1,00,000 TPA, to be set up at a strategic location. The Board has also approved that the company may look at inorganic growth opportunities simultaneously. Further the company has also been authorized to explore backward integration opportunities for sourcing of certain key raw materials. The above programme is likely to be implemented at an estimated capital outlay of Rs 150 crores including Core Working Capital.

To fund the same, the Board has approved that the company may go for an FCCB / GDR / QIP issue or a combination there of upto Rs 150 crores. For this purpose, it has been decided to convene an Extraordinary General Meeting of the members of the Company on November 28, 2006.

Source : Equity Bulls

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