The company said that the new expansion project of 42 million garments factory and sugar cum ethanol plant was progressing as per schedule
According to experts, demand from the home textile industry is expected to remain supportive in the near-to-medium term
The company said enquiries from the current clientele as well as from the new markets are much encouraging
As per media reports, the US has imposed restrictions on the import of certain products such as cotton and apparels from the Xinjiang Autonomous Region in China
Further, companies such as KPR Mill, which had withdrawn their buybacks following the unexpected tax outgo, have restored their buyback plan
The company said it is not permitted to meet the buyback obligations beyond the amount approved by the board of directors and the same can also be effected only with the borrowed funds.
The stock rallied 8% to Rs 730 on the BSE in intra-day trade in otherwise weak market after the textile company said that its board will meet on Thursday to consider share buyback proposal.
The stock was trading higher by 7% to Rs 600 on the BSE after the stock turned ex-stock split to Rs 5 from Rs 10.
The stock hit a record high of Rs 1,242 has been more-than-doubled from its 52-week low of Rs 620 hit on Feb 17, 2016 in intra-day trade.
The firm plans to expand the capacity by 100% to 50 MT