Chemcon Speciality gains 29% in 3 days after Plutus Wealth hikes stake

On December 30, 2020, Plutus Wealth Management LLP purchased 1 million equity shares, representing 2.7 per cent stake of Chemcon Speciality Chemicals, for Rs 43 crore on the NSE via bulk deal

Shares of Chemcon Speciality Chemicals moved higher by 7 per cent to Rs 536 on the National Stock Exchange (NSE) on Friday, surging 29 per cent in the past three days, after Plutus Wealth Management acquired 1 million shares of the company via open market.

On Wednesday, December 30, 2020, Plutus Wealth Management LLP purchased 1 million equity shares, representing 2.7 per cent stake of Chemcon Speciality Chemicals, for Rs 43 crore on the NSE via bulk deal, the data shows. Plutus Wealth Management bought shares at price of Rs 428.52 per share. The names of the sellers were not ascertained immediately.

Chemcon Speciality Chemicals, the company engaged in speciality chemicals business, debuted at the stock market on October 1, 2020. It was listed at Rs 731, a 115 per cent premium against the issue price of Rs 340 per share. The stock hit a 52-week low of Rs 398 on October 29.

The management said it foresees business momentum to continue led by the company's recent capacity expansion of P2&P7 Plant, new product launch, land acquisition and product approval from government authorities for 44 products which includes 9 current products. "Being a global leading manufacturer of pharmaceutical chemicals and a leading manufacturer in India of oilwell completion chemicals, the company is in a strong position to encapsulate the upcoming opportunities buoyed by long standing relationship with customers," it said while announcing September quarter results on November 9, 2020.

Chemcon Speciality Chemicals is a manufacturer of specialised chemicals, such as HMDS (hexamethyldisilazane) and CMIC (chloromethyl isopropyl carbonate), which are predominantly used in the pharmaceuticals industry. Further, the company also manufactures inorganic bromides namely Calcium Bromide, Zinc Bromide and Sodium Bromide, which are predominantly used as completion fluids in the oilfields industry. It is the only manufacturer of HMDS in India and was the third-largest manufacturer of HMDS worldwide in terms of production.

At 03:00 pm, the stock was trading 1.5 per cent higher at Rs 507 on the NSE, as compared to a 0.35-per cent rise in the Nifty50 index. A combined 8.7 million equity shares had changed hands on the counter on the NSE and BSE till the time of writing of this report.