Chembond Chemicals gains on plan to acquire additional stake in JV

Chembond Chemicals rose 1.99% to Rs 210 at 11:33 IST on BSE after the company entered into a share purchase agreement for acquisition of additional 49% stake in joint venture company.

The announcement was made after market hours yesterday, 10 January 2017.

Meanwhile, the S&P BSE Sensex was up 136.03 points, or 0.51% to 27,035.59

On the BSE, 35,000 shares were traded on the counter so far as against the average daily volumes of 8,394 shares in the past one quarter. The stock had hit a high of Rs 220 and a low of Rs 206 so far during the day.

The stock had hit a 52-week high of Rs 257.48 on 28 July 2016. The stock had hit a 52-week low of Rs 159.50 on 17 February 2016. The stock had outperformed the market over the past 30 days till 10 January 2017, rising 2.44% compared with the Sensex's 1.45% gains. The scrip, however, underperformed the market in past one quarter, sliding 6.62% as against the Sensex's 4.21% fall.

The small-cap company has equity capital of Rs 6.72 crore. Face value per share is Rs 5.

Chembond Chemicals said that the company has entered into a share purchase agreement (SPA) with I-Chem Solution Sdn Bhd, Malaysia and I Chembond Water Sdn Bhd, Malaysia, whereby the company, would acquire additional 49% of the equity shares of I Chembond Water Sdn Bhd, Malaysia. Post fulfillment of all the necessary terms, conditions & requirements as mentioned in the SPA, the company would hold 100% of equity share capital of I Chembond Water Sdn Bhd, Malaysia. Further, pursuant to the fulfillment of the terms of the SPA, the joint venture (JV) agreement with I-Chem Solution Sdn Bhd, Malaysia stands terminated.

Chembond Chemicals' net profit dropped 27.11% to Rs 2.42 crore on 4.11% rise in net sales to Rs 71.43 crore in Q2 September 2016 over Q2 September 2015.

Chembond Chemicals is engaged in manufacturing a diverse range of specialty chemicals like water treatment, polymers, construction chemicals, high performance coatings, animal nutrition's and industrial biotech products.

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