Shares of textile company Trident Ltd surged 3.5 percent and hit a 52-week high of Rs 26.4 on Monday after the company informed the bourses late on Thursday that its board of directors have approved the capacity expansion plan.

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The proposed capacity addition for the yarn business is 98,496 Spindles and 3,600 Rotors, and the sheeting business is 70,000 metres per day, while the company also proposed a capacity addition of 16.3 MW for its cogen plant in the energy business.

The textile player’s existing capacity stood at 589,248 Spindles, 7,464 Rotors and 160 Air Jet for its yarn segment, while its capacity in the sheeting segment was currently at 120,000 metres per day and the cogen plant was at 49.4 MW.

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The expansion plan which would require a total investment of about Rs 1,377 crore by way of debt and equity, is expected to be completed within a period of 24 months.

The growth plan will leverage Trident’s business expertise, capture business synergies, benefit from having an increased competitive advantage and also help the textile company cater to increased demand.

At 09:16 am, shares of Trident were trading one percent higher at Rs 25.75.

The stock has witnessed strong buying traction lately, which is evident from the recent rally. Shares of Trident have jumped 158 percent so far in 2021, 58 percent in the past 3 months and has soared around 280 percent in the past year.

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