Shilpi Cable gains after board approval for project at Abu Dhabi

Shilpi Cable Technologies gained 4.05% to Rs 104 at 15:30 IST on BSE after the board of directors approved setting up of project at Abu Dhabi, UAE for manufacturing of copper products.

The announcement was made before market hours today, 31 May 2016.

Meanwhile, the BSE Sensex was down 57.64 points, or 0.22%, to 26,667.96.

On BSE, so far 87,180 shares were traded in the counter, compared with an average volume of 63,424 shares in the past one quarter. The stock hit a high of Rs 105.10 and a low of Rs 101.10 in intraday trade.

Shilpi Cable Technologies said that the board of directors of the company approved setting up of project at Abu Dhabi, UAE through its subsidiary, having capacity of 60,000 metric tonne (MT) for manufacturing of copper products with an investment of $150 million out of which $50 million will be invested through equity and the balance $100 million will be through debt.

The board of directors also approved aquisition of 100% share of Shilpi Worldwide PTE Ltd, Singapore which is presently a step down wholly owned subsidiary of the company from company's direct wholly owned subsidiary -Shilpi Worldwide DMCC at the value of $5.3 million. After this transaction, Shilpi Worldwide PTE Ltd, Singapore shall be a direct wholly owned subsidiary of the company instead of step down wholly owned subsidiary. The proposed transaction is subject to the requisite statutory approvals.

Shilpi Cable Technologies' consolidated net profit rose 4.92% to Rs 44.37 crore on 20.33% rise in net sales ro Rs 1085.96 crore in Q4 March 2016 over Q4 March 2015. The result was announced before market hours today, 31 May 2016.

Shilpi Cable Technologies is a specialist across the varieties of cables widely used in telecom, automotive and energy segment.

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