Prakash Industries up 5% on equity warrants issue@HighLight Updates
Prakash Industries has raised Rs234cr through preferential allotment of convertible equity warrants. In total 1.125cr equity warrants were issued at Rs208 per warrant. 1 cr equity warrants have been allotted to various promoter entities. 12.5 lakh equity warrants have been issued to a non-promoter entity, Chartered Finance & Leasing Ltd. The proceeds of this of warrant issue would be used to reduce debt and help with working capital. The gross debt of the company stood at Rs582cr as on September 2017.
The company is recovering sharply as the increase in infrastructure spending provides a boost to its steel and PVC pipes businesses. Sales volumes for the company’s steel business grew by 39% yoy for Q3FY18, while volumes for its PVC pipes business grew by 45% yoy. As a result, Profit After Tax for 9MFY18 has grown by 401% yoy to Rs234cr.
Prakash Industries is an industrial conglomerate that is involved in the manufacturing of steel products, PVC pipes as well as power generation. The company’s steel capacity stood at 1mn tonne at the end of Q3FY18. The existing capacity for the PVC pipes stands at 55,000tpa and is expected to reach 110,000tpa by September 2019. The power generation capacity of the company stands at 230MW, which is used for both captive consumption as well as commercial generation.
The company is recovering sharply as the increase in infrastructure spending provides a boost to its steel and PVC pipes businesses. Sales volumes for the company’s steel business grew by 39% yoy for Q3FY18, while volumes for its PVC pipes business grew by 45% yoy. As a result, Profit After Tax for 9MFY18 has grown by 401% yoy to Rs234cr.
Prakash Industries is an industrial conglomerate that is involved in the manufacturing of steel products, PVC pipes as well as power generation. The company’s steel capacity stood at 1mn tonne at the end of Q3FY18. The existing capacity for the PVC pipes stands at 55,000tpa and is expected to reach 110,000tpa by September 2019. The power generation capacity of the company stands at 230MW, which is used for both captive consumption as well as commercial generation.
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