Nitin Spinners rises on getting nod for capacity expansion

Nitin Spinners is currently trading at Rs. 263.55, up by 2.20 points or 0.84% from its previous closing of Rs. 261.35 on the BSE.

The scrip opened at Rs. 267.90 and has touched a high and low of Rs. 267.90 and Rs. 255.15 respectively. So far 11799 shares were traded on the counter.

The BSE group ‘T’ stock of face value Rs. 10 has touched a 52 week high of Rs. 295.00 on 10-Nov-2021 and a 52 week low of Rs. 68.70 on 11-Feb-2021.

Last one week high and low of the scrip stood at Rs. 269.00 and Rs. 235.00 respectively. The current market cap of the company is Rs. 1482.80 crore.

The promoters holding in the company stood at 56.17%, while Institutions and Non-Institutions held 6.81% and 37.02% respectively.

Nitin Spinners has received approval from board of directors for expansion at a total project cost of Rs 950 crore. The expansion is targeted to be completed over next 20 months period with an aim to strengthen company’s market position and capture the benefit of growing market opportunity in international as well as domestic markets.

Capacity expansion shall happen across all the segments i.e. spinning, Knitting, weaving and Finishing, at the existing plant locations. Addition of 1,51,000 equivalent spindles will increase the spinning total production capacity from 75,000 TPA to 1,10,000 TPA, addition of 2,500 TPA capacity thereby increasing the Knitted Fabrics’ total production capacity from 9500 TPA to 11,000 TPA and with addition of 10 million Mtrs/PA thereby increasing the woven Fabrics’ production capacity from 30 million Mtrs/PA to 40 million Mtrs/PA.

Capital Expenditure will be funded through combination of Term Loan and internal accruals and the same is eligible for Interest subsidy and other benefits under Rajasthan Investment promotion Scheme (RIPS).

Nitin Spinners is among the largest manufacture of cotton yarn having the world class textile producer, export over more than 50 countries.

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