Anupam Rasayan shares jump 6% on winning order worth ₹2,186 cr

Shares of Anupam Rasayan surged nearly 6% in intraday trade on Wednesday after the specialty chemicals manufacturer informed exchanges that it has inked a deal with a Japanese speciality chemical company. The firm has signed a letter of intent worth ₹2,186 crore ($265 million) with tenor of 5 years, it said in an exchange filing on Tuesday.

Following the announcement, shares of Anupam Rasayan opened at ₹1,129.75, up 4% higher against the previous closing price of ₹1,086.05 on the BSE. Extending opening gains, the stock gained as much as 5.9% to hit an intraday high of ₹1,150, while the market capitalisation rose to ₹11,830 crore.  

The stock touched its 52-week high of ₹1,249.75 on May 29, 2023, while it slipped to its 52-week low of ₹547.10 on June 20, 2022. The midcap stock has risen 83% in a year, and over 54% in the past six months. In the last one month, the counter has lost 6%, while it added over 1% in a week.

Anupam Rasayan, engaged in the manufacturing of industrial chemicals, said in a BSE filing on Tuesday that it has signed a letter of intent for next 5 years with the Japanese firm to supply new age patented life science active ingredient. The company, however, didn’t reveal the name of the Japanese company.

“The product will be in the validation phase for the next eighteen months and upon successful validation, the supply will commence from CY2025. This product will be manufactured in our existing multipurpose manufacturing facilities,” it said in the exchange filing.

Anand Desai, managing director of Anupam Rasayan, said, “We are pleased to announce that we will be the primary global supplier of this new age patented life science active ingredient to one of the leading Japanese specialty chemical companies with the support of our Japanese business development team.

“With the addition of this new customer, we are delighted to include another renowned Japanese multinational in our customer portfolio. As we are fully backward integrated for this molecule, we can provide supply chain assurance to the customer without dependencies on supplies from other geographies," he said.

“The signing of this LOI represents a significant milestone for us, further cementing our position as a trusted provider of high-end customised molecules. We are excited about the opportunities this partnership brings,” he added.

Incorporated in 1984, Anupam Rasayan has two verticals - Life science related specialty chemicals comprising products related to agrochemicals, personal care and pharmaceuticals, and the other specialty chemicals comprising specialty pigment and dyes, and polymer additives. It is currently manufacturing products for over 71 domestic and international customers, including 27 multinational companies. The company operates via its six manufacturing facilities in Gujarat, India, with four facilities located at Sachin, Surat and two located at Jhaghadia, Bharuch with an aggregate installed capacity of about 27,000 MT as of March 31, 2023. 

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