9% FII-Backed Dividend Paying Stock Proposes Capacity Expansion Plan

Salasar Techno Engineering rose 3.27% on Tuesday in early trade after the company announced a capacity expansion plan. The FII-backed dividend-paying stock has announced a capacity expansion plan for its Zinc Galvanization plant.

The new Zinc Galvanization Plant (GI Plant) has been successfully set up and commissioned, the company said on Monday. With effect from September 25, 2023, this cutting-edge plant, which has an annual capacity of 96,000 metric tonnes, will be operating at its Unit III in the village of Khera P.O. Pilkhuwa, Tehsil-Dhaulana, District-Hapur, Uttar Pradesh, India.

A key turning point in Salasar Techno Engineering Limited's progress and growth is the new Zinc Galvanization Plant. "With its cutting-edge technology and enhanced capacity, the plant being among one of the largest in the world, is poised to play a pivotal role in meeting the growing demand for high-quality galvanized products in various industries, especially for transmission line monopoles & large size structures including infrastructure, construction, automotive, and more," said Salasar Techno Engineering in a stock exchange filing.

With an increased capacity of 96,000 metric tonnes per year, the Zinc Galvanization Plant will greatly increase its galvanization manufacturing capabilities. The plant uses the most modern and cutting-edge galvanization technology to guarantee the best products. Salasar Techno Engineering Limited continues to be committed to environmental sustainability, and the new facility complies with all applicable laws and guidelines. Employment opportunities will result from the expansion, promoting local economic growth.

Mr. Shashank Agarwal, Joint Managing Director of Salasar Techno Engineering Limited said, "The successful installation and commissioning of our new Zinc Galvanization Plant is a testament to our commitment to excellence and innovation. This state of-the-art facility will empower us to better serve our clients and meet the ever-growing demand for high-quality galvanized products. The commissioning of the Zinc Galvanization Plant marks a significant step forward for Salasar Techno Engineering Limited, as the company continues to expand its portfolio of services and strengthen its position in the industry."

For the fiscal year that ended on March 31, 2023, the firm declared a dividend on equity shares on September 23 at a rate of 10%, or Rs. 0.10 per equity share with a face value of Rs. 1.

On Tuesday, the shares of Salasar Techno Engineering opened on the BSE at Rs 52.80 apiece and clocked an intraday high of Rs 54.19 during the morning deals logging in a day high of 2.63%. The scrip made a 52-week-high of Rs 58.66 on (30/08/2023) and a 52-week-low of Rs 27.60 on (02/11/2022). During Q1FY24, the company recorded promoters shareholding of 63.07%, FIIs stake of 9.04% and public stake of 27.87%.