Shares of Himadri Speciality hit a 52-week high of Rs 307 on 6 December after it received approval from the Board of Directors to set up a manufacturing facility for the producing Lithium-ion Battery (LiB) components.

In its regulatory filing, the company said, “The Board of Directors at its’ meeting held on 5 December, 2023, has approved setting up of the manufacturing facility for the production of Lithium-ion Battery (LiB) components with total annual production capacity of 200,000 million tonnes (MT) either directly and/or through its subsidiaries with an estimated project cost of Rs 4,800 crores in phases over a period of 5 to 6 years.”

The investment required for the construction of the manufacturing facility will be made largely from internal accruals and a balance from debt.

The board has also considered approval for acquiring a 100% stake in Himadri Future Material Technology Limited by Himadri Clean Energy Limited (HCEL), a subsidiary of the company.

After completion of this acquisition, Himadri Future Material Technology Limited will become a wholly-owned subsidiary of HCEL and a step-down wholly-owned subsidiary of the company.

Through this acquisition, the company will set up the manufacturing facility for Cathode Active Material.

The acquisition is expected to be completed in 60 days from the date of signing the share purchase agreement or such dates as may be mutually agreed upon.

At 3:30 pm, the shares of Himadri Speciality closed 3.35% higher at Rs 300.55 on NSE.