Gujarat State Fertilizers & Chemicals (GSFC) shares rallied 4.6 per cent intraday after it informed stock exchanges about its plan to debt-finance Canadian mine company, Karnalyte Resources Inc, Canada (KRN).
GSFC is the largest shareholder in KRN. GSFC were trading 2.56 per cent up at Rs 66.15 in the noon trade. The scrip opened at Rs 64.85 and had touched a high and low of Rs 67.50 and Rs 64.20, respectively, in trade so far. Later, the share price of the company ended 1.55 per cent up at Rs 65.50.
In a BSE filing, the company said, “GSFC, as the largest shareholder of Karnalyte Resources Inc, Canada (KRN), has entered into an in-principle agreement with KRN to facilitate debt financing by procuring Standby Letter of Credit from Indian banks and backstop the untied equity/ mezzanine financing subject to the required Indian regulatory approvals.”
KRN is engaged in the business of exploration and development of high quality potash and magnesium products and in the first phase would produce 6,25,000 tonnes of potash per year, increasing to 2.125 million tonnes of potash per year on completion of all the three phases.