Lumax Industries rallies after getting the nod to set up a new greenfield project in Pune
On Thursday, the stock opened at Rs 1904.90 and touched a high and low of Rs 1955.95 and Rs 1904.30, respectively.
At noon, shares of Lumax Industries were trading at Rs 1935, up by 88.65 points or 4.80% from its previous closing of Rs 1846.35 on the BSE.
Lumax Industries has received approval for the establishment of a new Greenfield Project in Chakan, Pune (Maharashtra), with a capital outlay of up to Rs 175 crore for Phase 1. This project will address new orders for advanced lighting solutions from OEM customers.
The Capex will be funded through a combination of debt and internal accruals, with a peak annualised turnover of Rs 600 crore expected after commissioning. The project is expected to be completed by the second quarter of the fiscal year 2024. The Board also authorised the use of Long Term Credit Facilities to fund the aforementioned Project. The Board of Directors considered and approved the same at their meeting on December 7, 2022.
The DK Jain Group's flagship company is Lumax Industries Limited. It began as a trading company in 1945 and has since grown to become the market leader in automobile lighting in the Indian automotive industry. In 1984, the company formed a technical collaboration with Stanley Electric Co Ltd, Japan (SECL), which now owns approximately 37.5% of the company. The remaining 37.5% is owned by Indian promoters (D.K. Jain and family). In India, the company has 29 manufacturing facilities spread across seven states.
The promoters holding in the company stood at 75.00%, while institutions and non-institutions held 1.03% and 23.96%, respectively.
The BSE group 'B' stock of face value of Rs 10 has a 52-week high and low of Rs 2023.00 and Rs 840.00, respectively.
Last week high and low of the scrip stood at Rs 2023.00 and Rs 1808.40, respectively. The current market cap of the company is Rs 1080.32 crore.
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