Finolex Industries is currently the top gainer on the BSE, up over 5.5% at Rs.296, clocking volumes of 3000 shares in the morning trades.
There is unconfirmed news stating that the company is planning to invest Rs.100 crore to expand its capacity by another 1,00,000 tonnes over the next three years. This means by 2019, the company’s capacity will stand at 3,50,000 tonnes.
The report states that the company will fund this expansion through internal accruals and its business generates cash flows of over Rs.150 crore every year. It also aims to become debt free by 2019, getting rid of its current debt of around Rs.500 crore.
The stock exchanges have sought a clarification from the company on this news and reply is awaited. Mindless of any confirmation, the stock price has soared ahead.
The company is expected to declare its Q3FY16 numbers on 30th Jan.