Ahmedabad-based Astral Poly Technik Ltd hit an all-time high on the Bombay Stock Exchange (BSE) on Thursday after the company hinted at its likely joint venture (JV) with Lubrizol Corporation, managed by billionaire investor Warren Buffett's company Berkshire Hathaway Inc (BH).
At the closing on BSE on Thursday, the stock prices of Astral stood at Rs 215.50, showing a gain of 18.3 per cent against its previous close. The stock gave a gap-up opening on Thursday rising by 19.5 per cent to touch a high of Rs 218.50.
Yesterday, Lubrizol had revealed its plan to set up a chlorinated polyvinyl chloride pipe manufacturing plant at Dahej in Gujarat, with an investment of $245 million (Rs 1,177 crore).
Buffett's Berkshire Hathaway had recently acquired Lubrizol, a US-based speciality chemicals maker for $9.7 billion (Rs 46,613 crore).
Astral Poly Technik, in its regulatory filing to the stock exchange on Thursday said, "We wish to clarify that the discussions (with Lubrizol) are at a very preliminary stage and the same are subject to detailed negotiations. The company would announce its final plans as and when things are finalised."
Investors consider the development positive for Astral stocks.
"This is a very positive development. This is the first investment from Buffett in India. When he is taking a call on joining with a company, then there must be some substance in the company. He is the best judge of choosing a company than anyone else," said Saurin Shah, a stock analyst and broker in Ahmedabad.
Lubrizol will start the construction work of the unit at Dahej GIDC in January 2013, and production is likely to start from October 2014.
