Small-Cap Stock Rallies 14%, Hits New 52-Wk High on Expansion Project Approval

By Malvika Gurung — Shares of the technologically advanced products and systems manufacturer Schneider Electric Infrastructure (NS:) (SEIL) rallied 13.65% to Rs 162.35 apiece at the time of writing and hit a fresh 52-week high of Rs 165 apiece during early trade on Thursday.

The company’s Board of Directors has approved to enhance Schneider Electric Infrastructure’s production capacity of Vacuum Interrupters & Vacuum Circuit Breakers by setting up a manufacturing unit in Kolkata, at its board meeting held on Tuesday.

According to its regulatory filing, the current capacity of Schneider Electric Infra’s 80k MV Vacuum Interrupters stands at approximately 90% capacity utilization.

The small-cap company will increase its capacity by 180k MV Vacuum Interrupters and MV Vacuum Circuit Breakers assembly lines at an expenditure of Rs 138 crore over three years.

Regarding the funding of the capex, it will be conducted through internal accruals and/or borrowings. By expanding its existing capacity, SEIL aims to meet the domestic demand, in conjunction with raising export to Schneider Electric (EPA:) global entities for the acceleration of Make in India for Global, as per the company’s filing.

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