Panama Petrochem surges 25% in two days as Ramesh Damani buys 1% stake

Shares of Panama Petrochem hit a record high of Rs 322.30 after rallying 12 per cent on the BSE in Thursday’s intra-day trade in an otherwise weak market. This came on the back of heavy volumes.

In the past two trading days, the stock of the refineries/petro products company has surged 25 per cent, after investor Ramesh Damani bought over 1 per cent stake in the company during October-December quarter (Q3).

As on Q3, Ramesh Damani held 616,379 equity shares representing 1.26 per cent stake in Panama Petrochem, according to the shareholding pattern filed by the company on Wednesday. Damani held nil or below 1 per cent stake at the end of September quarter (Q2), data showed.

At 11:04 am, the stock was trading 9 per cent higher at Rs 313.80, as compared to a 1.4 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over five-fold with a combined 2.03 million equity shares having changed hands on the NSE and BSE. The stock surpassed its previous high of Rs 309.65, which was touched on August 5, 2021.

Panama Petrochem said increase in volume in company’s shares is purely as per investors’ perceptions based on information already disseminated to the stock exchanges.

“We would like to clarify that the company has been regularly sharing all information/announcements that may have a bearing on the operation/performance of the company including all price sensitive information with the stock exchange,” it said in a clarification with reference to movement in its share volumes.

Panama Petrochem is engaged in manufacturing specialty petroleum products for diverse user industries like printing, textiles, rubber, pharmaceuticals, cosmetics, power and other industrial oil.

On its future outlook, the company in FY21 annual report said that the aggregate demand of all the key segments in the petrochemical industry is likely to regain a sharp positive trajectory, with key players aiming to ramp up scale.

The company further said it is planning to expand its operations. The company is hopeful to override the adverse effects of the price fluctuations in the petroleum industry by resorting to bulk purchases and cost control measures.