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Last Updated : Feb 26, 2020 11:32 AM IST | Source: Moneycontrol.com

Navin Fluorine shares surge 12% on bagging multi-year contract

Shares of the company have been flying higher after the company bagged a multi-year contract from a global firm.

 
 
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A day after logging a strong gain of 20 percent, shares of Navin Fluorine International surged 12 percent in morning trade on BSE on February 26.

Shares of the company have been flying higher after the company bagged a multi-year contract from a global firm.

"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 on February 25.

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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," said the company.

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.

"This agreement, which represents Navin Fluorine's largest contract to date, continues to establish us as a leader in production and delivery of high-performance products within fluorination space," said Radhesh Welling, Managing Director of Navin Fluorine.

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.

Shares of the company traded 9.82 percent higher at Rs 1598.05 on BSE around 10:55 hours.
First Published on Feb 26, 2020 11:32 am
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