Khaitan Electricals board approves issue of equity shares

Kolkata, May 8 (UNI) The Board of Directors of electrical company Khaitan Electricals Limited today approved the issue of 30 lakh shares to strategic investors and 12 lakh shares to the promoters on a preferential basis at a board meeting here.

The decision is subject to shareholder approval.

The issue is being done to augment working capital resources as well as to meet the capital expenditure of Rs 20 crore for its new factory in Kala Amb at Himachal Pradesh in addition to its current manufacturing facilities at Kolkata, Hyderabad, Faridabad and Ponta Sahib.

The company recently announced the results for the financial year 2005-06 wherein net sales have grew by 78 per cent (y-o-y) with sales for the year 2005-06 at Rs 203 crores (Rs 121 crores). The net profit for the year have zoomed from Rs 2.5 crores in 2004-05 to Rs 7.6 crores a rise of over 200 per cent.

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