Shalimar Paints is planning to raise Rs 200 crore via rights issue. While a major portion will be used as working capital, a portion of the funding will go as capex to reestablish its Nashik unit.
Earlier, the home-grown paint company’s board has approved a rights issue of not exceeding Rs 240 crore.
Ashok Kumar Gupta, Vice-Chairman, Shalimar Paints, was quoted as saying by BusinessLine that an estimated Rs 40-45 crore will be spent on the Nashik factory which is expected to have an annual capacity of 25,000 kilolitres and is likely to be fully operational by April-May 2019. The factory was partially gutted in 2016.
He reportedly said that the revival of operations at the unit is central to the company’s turnaround scheme that includes shoring up capacity, focus on the West India market, and also a gain market share.
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