Finolex Cables is doing pretty well today; from its close of yesterday at Rs.857.70, opening higher at Rs.869.95, rising to an intraday high at Rs.873.
The stock price rose on news that the company is planning to set up a plant at Urse facility, Pune to produce Optical Fibre Preforms as well as expand on its Fibre draw capacity.
The plant with an initial capacity of 100 Tons of Preforms, is being set up at a cost of approximately Rs. 290 crore and this is to be funded entirely out of internal accruals.
The construction is expected to commence upon receipt of necessary regulatory approvals, while production from this new plant is expected to commence in 15 months approximately from the date of commencement of construction of plant.
The company said that the plant's capacity would be scalable and would be expanded at a later date subject to market requirements.