Over 1400% return in 3 years: JTL Industries hits fresh 52-week high as company plans mega expansion

The shares of the company zoomed after the company announced its plans for mega expansion.

JTL Industries also said that it will raise Rs 1,310 crore via preferential issues and qualified institutional placement (QIP) to finance this project.

Shares of JTL Industries, which is into steel tube manufacturing, gained more than 4 per cent to hit a fresh 52-week high in morning trade today i.e. on December 19. The counter opened upside at Rs 251.35 on the BSE and went on to hit an intraday high of Rs 252.75 apiece, which is also its new 52-week high. The counter had closed at Rs 240.75 in the last trading session.

Shares of JTL Industries, which have been for the last 5 days, have outperformed the sector by 3.9 per cent. The counter has risen 21 per cent in this period.

The shares of the company zoomed after the company announced its plans for mega expansion. The company has informed the bourses that it is planning mega capacity expansion in Maharashtra.

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"JTL, through its wholly owned subsidiary JTL Tubes Limited, is embarking on a groundbreaking journey with the establishment of a mega capacity augmentation project in Maharashtra," the company said.

JTL Industries also said that it will raise Rs 1,310 crore via preferential issues and qualified institutional placement (QIP) to finance this project.

The company’s board has given approval to raise the funds through an issue of warrants to promoters along with two public entities and a preferential issue of shares to qualified institutional investors to fund its growth plans.

"To finance this ambitious project, JTL is set to raise Rs. 13,100 Mn through various routes, including but not limited to Qualified Institutional Placement (QIP). This infusion of funds will be orchestrated from both promoter and non-promoter groups. Of the overall fundraising, the promoter and promoter group is committed to contributing Rs. 5,400 Mn, while the public, non-promoter group will play a pivotal role with the contribution of Rs. 2,700 Mn. The remaining Rs. 5,000 Mn will be garnered through the QIP route," the company said.

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