Clariant Chemicals surges on plan to sell Thane land

The company made the announcement during trading hours today, 16 July 2013.

Meanwhile, the S&P BSE Sensex was down 197.92 points, or 0.99%, to 19,836.56.

On BSE, 1.71 lakh shares were traded in the counter as against an average daily volume of 6,593 shares in the past one quarter.

The stock hit a high of Rs 488 and a low of Rs 414.40 so far during the day. The stock had hit a 52-week high of Rs 674 on 19 October 2012. The stock had hit a 52-week low of Rs 371.10 on 28 June 2013.

The stock had underperformed the market over the past one month till 15 July 2013, rising 0.95% compared with the Sensex's 4.47% rise. The scrip had underperformed the market in past one quarter, sliding 9.18% as against Sensex's 9.13% rise.

The small-cap company has an equity capital of Rs 26.66 crore. Face value per share is Rs 10.

Clariant Chemicals (India) said that its board approved the proposal to initiate the sale of land at Kolshet in Thane. The board also sanctioned the proposal to review options for relocating masterbatch plant from Kolshet.

Earlier this month, some media reports suggested that the company may raise between Rs 1500-1600 crore by selling the Thane land. Clariant has a chemical manufacturing unit on the land parcel and is planning to relocate it to Gujarat once the land is sold off, reports added.

Apart from monetising the property, another reason for Clariant to sell the land and change the location of the chemical factory is its proximity to other residential areas, media reports suggested.

Net profit of Clariant Chemicals (India) declined 21.99% to Rs 24.76 crore on 15.96% rise in net sales to Rs 277.47 crore in Q1 March 2013 over Q1 March 2012.

Clariant Chemicals (India) is a specialty chemicals company

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