Shares of SRF and Navin Fluorine International jumped after a brokerage firm reported that a U.S. gas distributor, IGas USA hiked the prices of refrigerant gases, R32 and R125.
Shares of SRF rallied 13.66% to Rs 2,672.25 while Navin Flourine International jumped 9.76% to Rs 3,825 on the BSE.Both the shares surged after IGas USA said that the supply of R32 and R125 has been impacted and prices will be increased by up to 200%.
The R32 refrigerant is used in air conditioning and low-temperature refrigeration systems. It absorbs heat and creates cool air. Similarly, the R125 is also used in air conditioning, refrigeration and other industries.
Brokerage firm noted that every $1 per kilogram change in realisations of the R32 refrigerant could increase SRF's Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) by Rs 260 crore. Similarly, every $1 per kilogram change in realisations of the R32 gas can improve Navin Fluorine's EBITDA by Rs 77 crore.
SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates. The company's diversified business portfolio covers fluorochemicals, specialty chemicals, packaging films, technical textiles, coated and laminated fabrics.
Navin Fluorine International belongs to a reputed industrial house of Padmanabh Mafatlal Group in India. It has largest integrated fluorochemicals complex in India. The company primarily focuses on fluorine chemistry - producing refrigeration gases, chemicals, inorganic bulk fluorides, specialty organofluorines and offers Contract Research and manufacturing services.
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