PG Electroplast's board passes resolution to raise funds

PG Electroplast has enabled resolutions to raise Rs 76.60 crore from investors for capacity expansion at its air conditioning plant in Pune.

Baring Private Equity India AIF, Ananta Capital (promoted by the Taparia Family) and the Patni family office are participating through preferential allotment of Equity Shares of Rs 40.30 crore and Compulsorily Convertible Debentures (CCD) of Rs 36.30 crore in the company.

Through this funding, PG Electroplast is planning to expand its plant situated in Pune which produces air-conditioners and cooler businesses and establish a new plant in Greater Noida which will produce air coolers, mobile phone parts and other plastic components.

Total investment planned for the expansions is about Rs 100 crore for this year.

Vikas Gupta, Managing Director of PGEL said, Through this growth focused funding, we plan to expand our production capacity in manufacturing of ACs and coolers. We want to triple the production capacity of AC manufacturing and other products too. The capacity expansion is in line with the growth envisaged in the segment and will also allow use to comfortably meet the PLI scheme criteria of the Government of India.

The announcement was made after market hours yesterday, 25 May 2021. Shares of PG Electroplast rose 4.99% to settle at Rs 392.60 yesterday.

PG Electroplast is a trusted partner for Electronic Manufacturing Services and Plastic Moulding for leading consumer durable and automotive plastic companies in India.

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