 "Kiri Industries zooms 75% on huge reduction in debt")
Shares of specialty chemicals manufacturer Kiri Industries has surged 14% to Rs 145, also its 52-week high on the BSE, after the company said that it has executed agreements to settle all of its debt.
This has resulted in significant reduction of the borrowing of the company by the end of fiscal FY16. The total borrowings have decreased from 853.13 crore to Rs 410.6 crore, which is about 51.87% reduction compared to the previous financial year, Kiri Industries said in a statement.
Further, as per settlement agreement executed, the company is committed to settle and repay majority of the balance debt during the current financial year 2016-17, it added.
There has been a sudden dramatic change in the market situation of Dyes Intermediate especially H-acid and vinyl sulphone due to closure of a leading manufacturing plant in China.
Kiri Industries said, the average price of H-acid during the previous financial year which has been ranging from Rs 300 to Rs 360 per Kg. was now shot up to about of Rs 900 to Rs 1,000 per kg and average price of vinyl sulphone during the previous financial year which stood at Rs 160 to Rs 180 per Kg. was now shot up to about of Rs 240 to Rs 275 per kg globally.
The company has installed capacity to manufacture 7200 MTPA of H-acid and 18000 MTPA of vinyl sulphone.
In past one-week the stock rallied 75% from Rs 83 on March 29, 2016 as compared to 1.6% rise in the S&P BSE Sensex.
At 09:50 AM, the stock was up 12% at Rs 142 on back of two-fold jump in trading volumes. A combined 570,096 shares changed hands on the BSE and NSE. The Sensex was down 0.40% at 25,298 points.
This has resulted in significant reduction of the borrowing of the company by the end of fiscal FY16. The total borrowings have decreased from 853.13 crore to Rs 410.6 crore, which is about 51.87% reduction compared to the previous financial year, Kiri Industries said in a statement.
Further, as per settlement agreement executed, the company is committed to settle and repay majority of the balance debt during the current financial year 2016-17, it added.
There has been a sudden dramatic change in the market situation of Dyes Intermediate especially H-acid and vinyl sulphone due to closure of a leading manufacturing plant in China.
Kiri Industries said, the average price of H-acid during the previous financial year which has been ranging from Rs 300 to Rs 360 per Kg. was now shot up to about of Rs 900 to Rs 1,000 per kg and average price of vinyl sulphone during the previous financial year which stood at Rs 160 to Rs 180 per Kg. was now shot up to about of Rs 240 to Rs 275 per kg globally.
The company has installed capacity to manufacture 7200 MTPA of H-acid and 18000 MTPA of vinyl sulphone.
In past one-week the stock rallied 75% from Rs 83 on March 29, 2016 as compared to 1.6% rise in the S&P BSE Sensex.
At 09:50 AM, the stock was up 12% at Rs 142 on back of two-fold jump in trading volumes. A combined 570,096 shares changed hands on the BSE and NSE. The Sensex was down 0.40% at 25,298 points.