Sunshine Capital share price was locked at 5% upper circuit in early trade on Wednesday after the non-banking finance company (NBFC) announced the signing of a term sheet with Man Stainless Steel Tubes, sanctioning ₹196.49 crore for a major manufacturing project. Sunshine Capital shares were up 4.74% at ₹2.43 apiece on the BSE.
Sunshine Capital said that it has sanctioned an amount of ₹1,964.90 million and signed a term sheet with Man Stainless Steel Tubes Ltd (MSSTL) towards the development of its manufacturing unit-2 for Non-API Electric Resistance Welded (ERW) Carbon Steel Pipes in Kathua, Jammu & Kashmir.
The proposed installed capacity of this manufacturing unit is 250,000 MT per annum. The financial facility sanctioned will be crucial in part-financing the capital expenditure required for the construction and development of this manufacturing unit. The total project cost is estimated at ₹280.70 crore.
“The sanctioned facilities include a Rupee Term Loan (RTL) of up to ₹1,964.90 Million and a Capex Letter of Credit (LC) of ₹1,450.00 Million - acting as a sublimit of the RTL facility. The project is projected to be completed by April 2025, with a loan tenor of 9 years, including a 12-month construction period and a 12-month moratorium on repayment,” Sunshine Capital said in a stock exchange filing.
Sunshine Capital is a non-deposit taking NBFC, registered and regulated by the Reserve Bank of India (RBI).
Sunshine Capital share price has rallied 10% in one week and more than 7% in one month.
Sunshine Capital stock turned ex-bonus and ex-split on March 7, 2024. The company had issued bonus shares in the ratio of 7:1, while the stock split was in the ratio of 10:1.
At 10:20 am, the penny stock, Sunshine Capital shares were still at upper circuit of ₹2.43 apiece on the BSE.
