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IFGL Refractories surges over 5% on plans to set up greenfield facility
Source: Business Standard
Illustration: Ajay Mohanty
Shares of IFGL Refractories soared up to 5.5 per cent at Rs 624.90 per share on the NSE. This came after the company on Monday entered into an agreement with Marvels International Group (MIG) of Seychelles and Marvel Refractories (Anshan) Company Limited (MRL) of P R China to set up a joint venture company in India with limited liability.
According to an exchange filing by IFGL Refractories, a US citizen, Yi Chun Lu is the majority shareholder of the Marvel group, which encompasses both Marvel companies (MIG,MRL).
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The JV is being set up for a green field facility to manufacture basic fired magnesite spinel bricks, basic fired magnesite bricks and fired magnesia chrome bricks in India.
IFGL Refractories said that the JV’s 51 per cent stake and 49 per cent stake will be held by the company and MIG, respectively.
Board of Directors of JV Entity will comprise of five Directors with three Directors to be nominated by the company and two Directors to be nominated by MIG. Establishment of the entity will cost a total of Rs 300 crore. In terms of capital infusion, both the Company and MIG will infuse capital in proportion to their shareholding, the IFGL Refractories exchange filing read.
The company also informed that trial and commercial production will commence no later than March, 2026 and Debt-to-equity ratio of the JV Entity will not exceed 1:1.
IFGL Refractories is engaged in manufacturing, trading, and selling refractory items and related equipment used in steel plants, along with providing services for refractory goods. Its manufacturing facilities are located in Kandla Special Economic Zone (SEZ), Gujarat; Kalunga Industrial Estate near Rourkela, Odisha; and Industrial Park APIIC De-Notified Area, Atchutapuram, Visakhapatnam District, Andhra Pradesh. The company operates subsidiaries in Asia (China), Europe (Germany and the United Kingdom), and North America (USA), serving both domestic and international markets.
IFGL Refractories share price history
IFGL Refractories stock has underperformed the market year to date as it has slipped 23.7 per cent, while gaining 23.4 per cent in the last one year. In comparison BSE Sensex has risen 13.3 per cent year to date and 23.5 per cent in a year.
The company has a total market capitalisation of Rs 2,187.77 crore. Its shares are trading at a price to earnings multiple of 27.80 times.
At 11:58 AM, the stock price of the company gave up some of its gains and advanced by 2.81 per cent at Rs 608.40 a piece on the NSE. By comparison, the NSE’s Nifty50 was down 0.18 per cent to 25,082 level.
First Published: Oct 15 2024 | 12:12 PM IST
