Vikas WSP has soared over 11% to Rs 65 on back of huge volumes, on reports that the company plans to more than double capacity to produce guar gum after surging demand for the product.
“The company will use its own cash to fund the expansion plans,” the report suggests quoting B D Agarwal, managing director of the company.
Guargum, extracted from guarseeds, is used a thickening agent and additive in food products such as instant soups, ice creams and processed meat products. Guargum has also been increasingly used for applications in paper, textiles, ore floatation, explosives and fracturing of oil and natural gas formations.
As many as a combined 1.48 million shares have already changed hands on the counter so far, against an average 835,000 shares that were traded daily in past two weeks.
