Navin Fluorine share price climbs 20% on bagging multi-year contract
The company said it would execute this capex and the project through wholly owned subsidiary Navin Fluorine Advanced Sciences.
February 25, 2020 / 02:51 PM IST
Navin Fluorine International share price gained 20 percent intraday on February 25 after the company bagged a multi-year contract from a global firm.
The stock, which has rallied 143 percent in the last one year, touched a record high of Rs 1,455. It was quoting at Rs 1,425.05, up Rs 212.45, or 17.52 percent, on the BSE at 1426 hours.
"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 Padmanabh Mafatlal Group company said in its BSE filing.
The project would 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, it said.
"The company will execute this capex and the project through its wholly owned subsidiary Navin Fluorine Advanced Sciences Limited and will be located at Dahej, Gujarat," it added.
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.
According to the speciality fluorochemicals manufacturer, the supplies are expected to commence from Q4 of FY22.
The board of directors on February 25 declared an interim dividend of Rs 4 per share of the face value of Rs 2 for the financial year 2019-20.