Shares of Pondy Oxides and Chemicals Ltd hit a 52-week high of Rs 798.05 on 10 January after the company announced signing an MoU with the Tamil Nadu Government.

In its regulatory filing, the company announced they have signed a MoU (memorandum of understanding) with the government of Tamil Nadu to set up recycling and manufacturing plants.

The company added, “Pondy Oxides has entered into a MoU with Tamil Nadu (TN) Guidance, the nodal agency of Government of Tamil Nadu (GoTN) for Investment Promotion and facilitation, to set up state of the art recycling and manufacturing plants for non-Ferrous metals, lithium-Ion batteries, paper, plastics and rubber contributing to sustainability and circular economy to the state of Tamil Nadu,”

The company has proposed a total investment of Rs 300-500 crore in the proposed.

The state’s government has also agreed to provide facilitation and support to the company in the form of necessary infrastructural support and regulatory facilitation that will be subjected to applicable laws that include uninterrupted power supply and other infrastructure support.

The Board of Directors of the company are scheduled to meet on 12 January 2024 to consider and approve the proposal for raising funds by way of issue of one or more instruments that includes equity shares, convertible securities of any description or warrants or debt securities, through preferential issue, private placement, rights issue or any other methods or combination, which is subjected to regulatory approval and approvals from the shareholders of the company.

At 2:00 pm, the shares of Pondy Oxides were trading 4.36% higher at Rs 460 on NSE.