Aether Industries' shares soar on heavy volumes

Aether Industries stock has gained around 4.6 percent so far this year, underperforming Nifty's returns of 15 percent.

Shares of Aether Industries soared over 5 percent on September 4 amid high volumes. So far in the day, around 3 lakh shares of the company changed hands on BSE and NSE combined, compared to the one-month average of 64,000 equity shares.

At 11:03 am, Aether Industries shares were trading 3.6 percent higher at Rs 922.75 on the National Stock Exchange (NSE).

The speciality chemical manufacturer recently signed an exclusive contract manufacturing agreement with Chemoxy International Ltd, a wholly-owned subsidiary of the SEQENS group. Under this take-or-pay agreement, Aether Industries will exclusively produce a range of natural bio-based products for SEQENS.

The contract spans an initial period of three years. Production is set to begin within the next 10 months, with an expected annual volume exceeding 100 metric tonnes. The manufacturing process, which involves a complex process and continuous reaction technology, was collaboratively developed by Aether and Seqens over the past three years.

SEQENS, a France-based global leader in health, personal care, and speciality ingredients, operates 16 production sites and 9 R&D centres worldwide, with an annual revenue of EUR 1.1 billion.

"Under this take-or-pay contract, Aether will produce a series of natural bio-based products exclusively for Seqens. The contract spans an initial period of three years. The production is expected to commence over the next 10 months with a volume of 100+ MT per year," Aether said.

The stock has gained around 4.6 percent so far this year, underperforming Nifty's returns of 15 percent. In the past 12 months, the counter has fallen 7 percent. In comparison, Nifty rose 28 percent during this period.