PG Electroplast Limited, a leading consumer durables manufacturing company and electronics manufacturing services provider, on 19th June, 2021 approved an incoming investment of Rs76.6 crore in the Extra-Ordinary General Meeting (EGM) of the company.
The shareholders approved the issue of Equity Shares and Compulsorily Convertible Debentures to Baring Private Equity India AIF, the Taparia family backed Ananta Capital, members of the Patni family office and some individual investors.
The meeting of the shareholders of PG Electroplast was held on 19th June, 2021 through audio-video conferencing. The shareholders overwhelmingly voted to approve the resolution for issuance of equity shares and compulsorily convertible debentures as proposed by the Board, with over 99.99% voting in favour of the proposals.
This, according to the company, is an incredible landmark in the company’s history as this approval paves the way for exponential growth thereby creating greater value for all stakeholders.
Vishal Gupta, Managing Director (Finance), PG Electroplast Limited said, “The investment by Baring PE and the family offices provides great affirmation in the future of Indian manufacturing and also endorses PG’s business model and future plans. We anticipate market demands for consumer durables to increase, and we will continue building further capabilities and capacities to be able to capture the same.”
He said this infusion of funds will also further enhance PG Electroplast’s abilities to make investments into its air conditioner manufacturing capabilities, making it a stronger contender for the production linked incentives scheme for white goods announced by the Government of India.
PG Electroplast has been growing continuously since despite restrictive business situations and has posted good results for FY21, recording a robust growth of 10% in the revenue. EBITDA has grown 23.6% YoY accompanied by a 344% jump in net profits over the same period.Â
The company said the funds raised will be used to further strengthen its balance sheet and give it growth capital which it needs for investing in the capex in FY22. The planned capex for FY22 is over Rs 100 crore, and will be used for building, plant & machinery and product development activities. The company is planning a world-class integrated facility for AC manufacturing on the recently acquired land in Ahmednagar and will be expanding capacities in Noida for AC parts and its sanitaryware business. It is going to invest in its Research and Development divisions to be able to offer the best ODM solutions for its customers and to improve its value addition.