Gravita India To Raise Up To Rs 1,000 Crore Through Multiple Securities

Gravita India Ltd. will raise up to Rs 1,000 crore via multiple securities following board approval on Friday. The funds will be raised through share sale or equity-linked instruments or debt issue in one or more tranches, according to an exchange filing.

The securities will be issued via private placement, further public issue of equity/debt securities, preferential issue or a rights issue.

The company announced the resignation of Chairman and Whole Time Director Prasad Agarwal due to personal reasons effective from Oct. 5.

Rajat Agrawal has been redesignated as from managing director to chairman cum MD. The board also appointed Sunil Kansal as whole time director.

Gravita India is one of India's largest lead producers. The company's business is organised across four specialised verticals, including lead recycling, aluminium recycling, plastic recycling, and turnkey projects.

The company also has expertise in recycling used batteries, cable scrap/other lead scrap, aluminum scrap, plastic scrap, and so on.

The company generates the majority of its revenues from lead recycling and is foraying into newer verticals, which are likely to benefit from the global push for the adoption of the circular economy, according to Axis Securities Ltd. With its planned capacity additions, Gravita appears to be well-positioned to benefit from strong tailwinds in the sector, the brokerage said.

Shares of Gravita India closed 3.3% higher at Rs 2,386 apiece ahead of the announcement, compared to a 0.9% decline in the benchmark NSE Nifty 50.
It has risen 164% in the last 12 months and 121% on a year-to-date basis.

All five analysts tracking Gravita India have a 'buy' rating on the stock, according to Bloomberg data. The average 12-month analyst price target of Rs 2,675 implies a potential upside of 13%.