Shares of Alkyl Amines Chemicals moved higher by 7 per cent to Rs 4,141 on the BSE in intra-day trade on Monday after the company announced stock split and expansion plans. The stock of the specialty chemical firm was trading close to its record high of Rs 4,162 touched on December 2, 2020.
"The board of directors of the company are scheduled to meet on February 2 to consider the proposal of sub-division of equity shares of the company from the face value of Rs 5 to a lower denomination. The board will also consider the proposal for setting up of new project(s) including Amines," it said in a BSE filing. READ HERE
Further, the company added that in the said meeting, the board will approve financial results for the quarter and nine months ended December 31. The board will consider the declaration of interim dividend, if any, on the equity shares of the company for the financial year 2020-21.
Generally, a company plans to go for a stock split to make the shares more affordable for small retail investors and increase liquidity. In the past one year, the stock of Alkyl Amines has rallied 240 per cent as compared to a 16-per cent rise in the S&P BSE Sensex. Earlier, in September 2014, the company had subdivided the face value of its equity shares from Rs 10 paid-up to Rs 5 paid-up.
For the year 2020-21, the management said the company's focus will continue on sustainable growth by taking measures for increasing our market share of existing products.
"Increased competition from global and domestic players are putting pressure on sales prices. Increase in prices of certain raw materials has also put pressure on contribution. However, with the global growth of chemicals focused more on Asia, it is expected that there will be further growth in the chemical industry," the management said in FY20 annual report.
During the year 2020-21, the management expects investments in various projects to add to both the topline and bottomline. The company will continue with its efforts for improving bottomline by expanding product-range while re-looking at business strategies and models, wherever necessary, it said.