Shares of Pennar Industries Ltd. surged over 10% to hit a record high on Tuesday after it said it is expanding its manufacturing operation in Northern India by establishing a new plant at Raebareli in Uttar Pradesh.
The manufacturing unit at Raebareli spans 16 acres, featuring a built-up area of 12,000 square metres, according to an exchange filing. The new unit is a pre-engineered building manufacturing plant with "state-of-the-art" machinery and a production capacity of 36,000 million tonne per annum. The plant will likely come up in the current quarter, the company said in the filing.
A PEB manufacturing plant makes steel building systems, which are later taken to the location for assembly.
Once set up, the new plant is estimated to cut down transportation costs for Pennar Industries and enable it to meet the demands of customers in East and North India, the filing said.
Pennar Industries has not disclose the cost of establishing the new PEB manufacturing plant in Raebareli.
Shares of Pennar Industries jumped 10.25% to a record high of Rs 191.70 apiece. It pared gains to trade 5.61% higher at Rs 183.63 as of 10:23 a.m., compared to 0.04% advance in the NSE Nifty 50 index.
The stock gained 133.63% in last 12 months and 47.23% on year to date basis. Total traded volume so far in the day stood at 5.3 times its 30-day average. The relative strength index was at 65.94.
Both the analysts tracking the company maintain a 'buy' rating, according to Bloomberg data. The average 12-month consensus price target implies an upside of 1.6%.
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