Navin Fluorine International Ltd shares have surged nearly 34% in the last two trading sessions after the company announced that it has bagged a multi-year contract from a global firm. Navin Fluorine shares shot up by as much as 12% on BSE on Wednesday to hit the day’s high of Rs 1,629.80 apiece after closing 20% higher in the previous session as well. At 11:26 am, the stock was trading at Rs 1,565.50, up 7.7%. Interestingly, the Navin Fluorine stock has risen by a whopping 161% in the last one year compared with a 9% rise in the benchmark Nifty 50 index.
The fluorochemical maker on Tuesday said: “The company has entered into a $410 million (Rs 2,900 crore at current exchange rate) multi-year contract with a global company for manufacture and supply of a high-performance product in the fluorochemicals space.”
The project will be funded through a mix of internal accruals and debt, the company said. The contract is for seven years and the product is not part of Navin Fluorine’s existing product portfolio, it added. The supplies are expected to commence from the fourth quarter of FY22.
“The project will entail an investment of about $51.50 million (Rs 365.50 crore) in the manufacturing facility and $10 million (Rs 71 crore) in captive power plant,” the company added.
Navin Fluorine further said it will execute this capex and the project through its wholly owned subsidiary Navin Fluorine Advanced Sciences Ltd, adding that the project will be located at Dahej, Gujarat.
Separately, the board of directors of the company on 25 February had also declared an interim dividend of Rs 4 per share of the face value of Rs 2 for 2019-20.
Comments
0 comment