Asian Paints rose 0.84% to Rs 806.45 at 9:30 IST on BSE after the company said it is exploring the possibilities of setting up of a paint manufacturing plant in the southern states of the country.
The company made announcement after market hours yesterday, 24 February 2015.
Meanwhile, the S&P BSE Sensex was up 229.40 points or 0.79% at 29,234.06.
On BSE, so far 8,546 shares were traded in the counter as against average daily volume of 1.94 lakh shares in the past two weeks.
The stock hit a high of Rs 809 and low of Rs 806 so far during the day. The stock had hit a record high of Rs 922.80 on 29 January 2015. The stock had hit a 52-week low of Rs 465 on 24 February 2014.
The stock had underperformed the market over the past one month till 24 February 2015, falling 7.21% compared with 0.94% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, surging 15.95% as against Sensex's 1.77% rise.
The large-cap paint manufacturer has equity capital of Rs 95.92 crore. Face value per share is Re 1.
Asian Paints said it is exploring the possibilities of setting up of a paint manufacturing plant in the southern states of the country. To meet the demand in the southern and eastern parts of the country, the company is exploring the possibility of setting up integrated paint manufacturing plants in the states of Karnataka and Andhra Pradesh. The company is in the advanced stage of negotiations with the respective state governments. Based on the availability of land, other factors and regulatory approvals, the company will decide the location of the plant. The approximate investment at current prices for setting up a plant with a capacity of 6 lakh KL (kilo litre of paints) per annum would be Rs 2300 crore over a period of 5 to 7 years. The company will make necessary disclosures on any material developments in this regard, the company said in a statement.
Asian Paints' consolidated net profit rose 11.8% to Rs 368.18 crore on 5.8% rise in total income to Rs 3684.64 crore in Q3 December 2014 over Q3 December 2013.
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