Recycling player Gravita India Ltd on Wednesday said it has raised 34 million euros in loan facility from two European developmental financial institutions. Shares of the company surged 10 percent following the announcement.
The loan has been granted after rigorous due diligence on various environmental, social, and governance aspects at Gravita's manufacturing subsidiaries, the company said in a statement.
"Step-down subsidiary Gravita Netherlands BV has been provided 34 million euros ESG loan from SOCIÉTÉ DE PROMOTION ET DE PARTICIPATION POUR LA COOPÉRATION ECONOMIQUE S.A.(Proparco) and Oesterreichische Entwicklungsbank AG (OeEB)," it said.
This facility enables Gravita's offshore businesses to gain a financial boost for its capex and working capital needs. The loan will be utilized to further strengthen Gravita's sustainability initiatives.
Jaipur-based Gravita is a leading recycling company with 11 manufacturing facilities across the globe having a total capacity of 2.51 lakh MTPA.