Manali Petrochemicals extends rally on acquisition of UK-based Notedome

The stock hit a 52-week high of Rs 42.20, surging 30% in past two trading sessions from Rs 32.45 since September 30

Manali Petrochemicals has rallied 12% to Rs 42.20, extending its Monday’s over 15% surge on the BSE, after the announced the acquisition of Notedome Limited, a System House based in UK for a total consideration of about Rs 120 crore.

The stock of petrochemicals company trading at its 52-week high, has surged 30% in past two trading sessions from Rs 32.45 on September 30, 2016.

“The transaction for acquisition of the overseas System House has been completed through its wholly owned subsidiary, AMCHEM Speciality Chemicals UK which has acquired Notedome Limited, Coventry, UK for a total consideration of GBP 13.50 million partly funded by internal resources and the balance through bank loans,” Manali Petrochemicals said in a statement.

Notedome manufactures Neuthane Polyurethane Cast Elastomers. Neuthane polyurethanes are used in diverse range of industries and applications, in the automotive sector for anti-roll bar, suspension and shock bushes for buses, trucks and other high performance vehicles, limit or bump stops, material handling etc. and in the agriculture sector for rollers, harvester components and idler wheels on track laying tractors.

At 10:29 am, the stock was up 8% at Rs 40.85 on the BSE. The trading volumes on the counter jumped an over four-fold with a combined 6.71 million shares changed hands on the BSE and NSE so far.