HEG approves share buyback offer worth Rs 750 cr
Graphite electrode maker HEG Monday said its board has approved a share buyback offer worth Rs 750 crore.
Besides, the board has cleared an investment proposal of Rs 1,200 crore to expand the graphite electrodes and related products capacity by 20,000 tonnes per annum (TPA). The existing capacity is 80,000 TPA, it said in a BSE filing.
"The board of directors of the company at its meeting held Monday approved a proposal to buy back up to 13,63,636 shares of the company, being 3.41 per cent of the total paid up capital of the company for an aggregate amount not exceeding Rs 750 crore," it said.
The company's plant at Mandideep near Bhopal in Madhya Pradesh is the largest single-site integrated graphite electrode facility in the world.
Ravi Jhunjhunwala, chairman and managing director and CEO, HEG Ltd said, "The global demand for graphite electrodes is robust as the steel industry worldwide shifts towards the more efficient Electric Arc Furnace route (EAC).
"With China shutting down excessively polluting steel Production by BOF/Induction Furnace routes, the EAF (Electric Arc Furnace) route which is very environmentally friendly is gaining market share resulting into a robust demand for our products. Domestically, with our steel industry consolidating and newer capacities also opting for EAF route, the demand for our product within India is also likely to grow in coming years."
The stock of HEG settled at Rs 4,360.40 apiece, up 0.22 per cent on BSE.
(With inputs from agencies.)