MUMBAI (Commodity Online): West-Bengal based carbon black producer, Phillips Carbon Black Ltd (BOM: 506590) surged on the Indian bourses today after the company’s boards approved the proposal to raise about Rs.200 crore via qualified institutional placement.

The company stocks zoomed by close to 5% to Rs.204.80 in the morning trades on Bombay Stock Exchange (BSE) after the company’s announcement. The company had made the announcement after trading hours on Thursday.

The company board has also approved raising Rs.25 crore via preferential issue of warrants. The stock hit a high of Rs.215.60, which is also a 52-week high.



The stock had outperformed the market in past one quarter, gaining 25.09% as against 0.29% decline in the Sensex.

The company has also joined hands with Danang Rubber Joint Stock Company, together with Southern Rubber Industry Joint Stock Company (Casumina) and Sao Vang Rubber Joint Stock Company to establish a joint venture for carbon black production.

Production plant, located in Ba Ria - Vung Tau Province, will have annual capacity of 110,000 tons of carbon black, which will be partially exported to Korean and Japan.

The small-cap carbon black maker, which is an input for manufacturing of tyres, has an equity capital of Rs 28.25 crore and had reported a net profit of Rs.33.63 crore in Q3 December 2009 compared with a net loss of Rs.45.98 crore in Q3 December 2008. Sales rose 32.2% to Rs.346.76 crore in Q3 December 2009 over Q3 December 2008.

Post your comment  (1)

Connect:

Post to Twitter

Post to Facebook