Graphite India arm to acquire stake in US based firm

The company's wholly-owned subsidiary has entered a pact to invest US$ 18.6 million for 46 per cent stake in General Graphene Corporation.

Through its subsidiary, Graphite International BV, Netherlands, Graphite India Limited has signed a definitive agreement to invest US$ 18.6 million in multiple tranches over a period 2 to 3 years. The amount will be invested according to mutually agreed upon milestones for production of graphene sheets.

Graphite India's investment in General Graphene is in-line with the company's strategy to develop high-end products. General Graphene is a private company in Tennessee, US, which has developed a disruptive technology to produce graphene sheets in industrial volumes at a lower cost. Graphene is a light yet strong material with exhaustive opportunities in new high-tech applications, including bio-electric sensory, touchscreen, filtration, aeronautics and batteries.

Reacting to this development, the stock of Graphite India was at Rs. 1,034.95 per share, up Rs. 22.45 or 2.22 per cent at 9:58 hours on Monday. The stock opened gap-up at Rs. 1,041.00 per share, and hit a intraday high of 1049.90 in early trade on BSE exchange.