Gujarat Cotex shares hit 5% upper circuit on diversification plan

Shares of Gujarat Cotex rose 5% to Rs 3.25 on Monday after the company announced plans to launch two new business divisions, Prabhat Oils and Prabhat Infratech. The penny stock hit the upper circuit in Monday's trade following the announcement.

The proposed division Prabhat Oils will focus on trading, processing and refining edible oils, leveraging the Prabhat brand and the promoter group's experience. Prabhat Infratech will explore residential and commercial development projects in and around Surat, as well as opportunities in Dholera Smart City.

The proposals will be placed before the board for approval. Subject to board and regulatory clearances, the company plans to commence activities in a phased manner.