Agrochemical company NACL Industries share price gained nearly one percent intraday on November 4, the Diwali Muhurat Trading 2021, despite the termination of contract manufacturing agreement (CMA) with agricultural solutions & technology company UPL.
"It has been mutually agreed between NACL and UPL to terminate the CMA and all the ancillary documents/agreements vide execution of the 'Mutual Termination and Settlement Agreement (Termination Agreement)," said the company in its BSE filing.
The company further said such termination would materially not have any financial and business impact on NACL.
"The Termination of the CMA shall not in any manner, affect the commercial and business relationship of the parties, accrued over a long term prior to the aforesaid deal."
Catch All Market Updates Live On Diwali Muhurat Trading Day, here
While explaining about reason for termination, the company said in view of changed business circumstances with respect to commercial feasibility of the project, other external and internal factors the CMA was commercially unviable to both parties.
NACL Industries had earlier signed a contract manufacturing agreement with UPL for the purpose of contract manufacturing of three intermediate products at company's Srikakulam technical plant.The stock price traded at Rs 75.75 with gains of 0.87 percent on the BSE, at 18:18 hours IST.