Greenlam Industries surges 11% on stock-split; Rs 950-cr investment in laminate biz
The stock was further propelled upward by the board’s decision to invest Rs 950 crore in 2-3 years to set up its third laminate plant while making a foray into the plywood and particle board business.
By Bhaskar Dutta, ETMarkets.com |
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NEW DELHI – Shares of Greenlam Industries jumped over 11 per cent to Rs 1,881 in early trade on Tuesday as investor’s cheered the company’s move to announce a stock split of equity shares having a face value of Rs 5 each to Re 1 each.
The stock was further propelled upward by the board’s decision to invest Rs 950 crore in 2-3 years to set up its third laminate plant while making a foray into the plywood and particle board business.
In a release, the company said that the rationale behind the stock split was to encourage the participation of retail investors by making the equity shares more affordable for them and to enhance the liquidity of equity shares of the company in the stock markets.
The company’s shares have seen a stellar run of late, gaining 22 per cent. Over the year, the counter has surged close to 120 per cent.
On the plans to expand the laminate business, Greenlam said, “Witnessing a spiral demand in the wood panel segment, the company has taken the next leap and decided to expand its portfolio by venturing into two adjacent categories — plywood and particle board and also setting up a third laminate plant. This expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player.”
The company expects to commence the commercial production of plywood and laminate by the fourth quarter of 2022-23 (Apr-Mar) and particle board by the fourth quarter of 2023-24.
The company is among the top 3 laminate manufacturers worldwide.
The stock was further propelled upward by the board’s decision to invest Rs 950 crore in 2-3 years to set up its third laminate plant while making a foray into the plywood and particle board business.
In a release, the company said that the rationale behind the stock split was to encourage the participation of retail investors by making the equity shares more affordable for them and to enhance the liquidity of equity shares of the company in the stock markets.
The company’s shares have seen a stellar run of late, gaining 22 per cent. Over the year, the counter has surged close to 120 per cent.
On the plans to expand the laminate business, Greenlam said, “Witnessing a spiral demand in the wood panel segment, the company has taken the next leap and decided to expand its portfolio by venturing into two adjacent categories — plywood and particle board and also setting up a third laminate plant. This expansion will position Greenlam from a decorative surfacing company to a leading integrated wood panel player.”
The company expects to commence the commercial production of plywood and laminate by the fourth quarter of 2022-23 (Apr-Mar) and particle board by the fourth quarter of 2023-24.
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The company is among the top 3 laminate manufacturers worldwide.
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