Manjushree Technopack receives sanction for Expansion Project from SBI

State Bank of India, IFB, Bangalore vide their letter December 22, 2009 has communicated sanction of enhanced credit limits to the tune of Rs. 125 Crores (as against previous sanction of Rs. 56.60 Crores) in order to part finance the Company's ongoing capacity expansion project. This includes a fresh term loan of Rs. 64 crores towards acquisition of fixed assets while the company's contribution of Rs. 28 crores has been fully financed by internal accruals.

The project envisages capacity expansion by 9120 MTPA taking overall plant capacity to 28640 MTPA, besides catering to additional infrastructural and utility requirements in respect of existing as well as proposed operations. The plant capacity expansion is likely to be commissioned by March 2010 barring unforeseen circumstances.

The company has also acquired a plot of land admeasuring 7675 sq.mtrs. adjacent to its existing facilities at Bommasandra Industrial Area, Bangalore to cater to its ongoing expansion requirements, and the civil works on the same are likely to be completed by September 2010.

The Company has initiated necessary steps to complete the legal documentation for the enhanced facilities and to avail the facilities at the earliest to meet its funding plans.

The Stock closed the day at Rs.40.35, up by Rs.3.65 or 9.95%. The stock hit an intraday high of Rs.40.35 and low of Rs.38.

The total traded quantity was 431131 compared to 2 week average of 99642.

Source : Equity Bulls

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