Graphite India seeks shareholders' nod to raise Rs 5000 cr

Graphite India Ltd has sought the shareholders' nod to raise upto Rs 5,000 crore to meet the company's resource requirements including capex and acquisitions.

The fund will be raised in one or multiple tranches in the Indian or overseas markets, said a company resolution which was sent to the shareholders.

Graphite India did not elaborate on any specific capex plan.

The company was planning to scale the capacity of its Durgapur unit in West Bengal after the closure of the Bangalore plant following green tribunal orders.

The Bangalore plant had an output of 13,000 tonnes and contributed 17.05 per cent to the turnover of the company Ltd in 2017-18.

The company had said it would debottleneck its Durgapur unit, along with the Nasik facility to cover the gap caused by the closure of the Bangalore plant.

Durgapur is the largest producer of the electrode for the company, accounting for around 59 per cent of its capacity of 98,000 tonnes.

The company made a profit after tax of Rs 3,396 crore on an income of Rs 5,233 crore in 2018-19.