Aarti Industries moves up on BSE

Aarti Industries is currently trading at Rs. 677.40, up by 8.00 points or 1.20% from its previous closing of Rs. 669.40 on the BSE.

The scrip opened at Rs. 672.40 and has touched a high and low of Rs. 680.65 and Rs. 670.85 respectively. So far 29662 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 5 has touched a 52 week high of Rs. 1,031.40  on 17-Jan-2022 and a 52 week low of Rs. 616.82 on 19-Oct-2022.

Last one week high and low of the scrip stood at Rs. 711.50 and Rs. 647.00 respectively. The current market cap of the company is Rs. 24266.02 crore.

The promoters holding in the company stood at 44.16%, while Institutions and Non-Institutions held 27.14% and 28.70% respectively.

Aarti Industries (AIL) and Deepak Fertilisers & Petrochemicals Corporation (DFPCL) have signed a binding term sheet for a 20 year period for offtake and supply of Nitric Acid. The parties plan to execute the formal agreement before the close of this calendar year. The supply arrangement comes into effect from April 01, 2023. DFPCL is the largest manufacturer of Nitric Acid in South East Asia and the company is one of the largest Nitric Acid consumers in India. This arrangement is a landmark and first of its kind long term association between two Indian chemical majors to augment each other's business needs and mutual interests.

The deal provides specific volume commitments with supply or pay, take or pay obligations by either party thereby providing adequate assurance, financial security and protecting either party’s commercial interests. Using the foundation of the current relationship of over the past three decades, this deal further strengthens and elevates the current relationship to a long-term collaborative association for years to come.

The deal benefits AIL by way of a long-term supply security for a key raw material. This would meet a majority of AIL’s requirements. It also helps AIL have a greater assurance in sourcing the key RM from DFPCL, who is an existing and the largest integrated nitric acid producer in India with multiple production sites. AIL, being a manufacturer for specialty chemical and downstream products, the present deal provides a strong supply security and enables AIL to focus on future growth opportunities, introduction of new value-added products and value chains for niche applications.

Aarti Industries is engaged in manufacturing and dealing in speciality chemicals and pharmaceuticals.