Pokarna surges 15% on subsidiary's capacity expansion plans

The stock surged 15% to Rs 1,181, also its fresh 52-week high on the BSE

Pokarna surged 15% to Rs 1,181, also its fresh 52-week high on the BSE, after the company announced that its subsidiary Pokarna Engineered Stone (PESL), has plans to expand its quartz surfaces production capacity by 130% with an investment of Rs 325 crore in a Greenfield facility.

“This investment is expected to be completed by June 2018 and PESL would finance this project through combination of free cash flow/internal accruals of Rs 75 crore and loans worth Rs 250 crore,” Pokarna said in a BSE filing.

PESL is in receipt of financial sanction from its lead banker, for the term loan of Rs 250 crore, for funding the project, it added.
 

Earlier, this month PESL partnered Swedish home furnishing products retailer IKEA in India, to serve as its exclusive quartz surfaces supplier and installation partner.

“Under the agreement, Pokarna will supply engineered quartz surfaces, counter-top and will also undertake measuring, planning, installation and home delivery of its products to IKEA's customer,” Pokarna said.

Thus far in 2017, the stock rallied 30% from Rs 906 against 2.3% rise in the S&P BSE Sensex.

At 12:18 pm; it was up 13% at Rs 1,162 as compared to 0.08% gain in the benchmark index. Around 33,000 shares changed hands on the counter so far against an average 13,000 shares that were traded daily in past two weeks.