1 min read.Updated: 20 Aug 2021, 10:49 AM ISTLivemint
Meghmani Finchem's listing as a separate and independent entity on the exchanges is aligned with the long-term vision of the management, its CMD said
Chemical manufacturing companies Meghmani Finechem (MFL) and Meghmani Organics (MOL) shares, which got listed on the stock exchanges on Wednesday, hit 5% upper circuit band today for the second straight session. Meghmani Finechem shares were up at ₹425.9 per share whereas that of Meghmani Organics surged to ₹99 per share. The companies' scrip had closed at upper circuit levels on the listing day.
Meghmani Organics had demerged its agrochemical and pigment divisions into a separate subsidiary, Meghmani Organochem Ltd and transferred other businesses of MOL (chloro-alkali and its derivatives business) to Meghmani Finechem. Eventually, Meghmani Organochem was renamed as Meghmani Organics Ltd and the company's shares got relisted on the exchanges.
The shareholders of Meghmani Organics were allotted 94 fully paid equity share of a face value of ₹10 of MFL for every 1,000 fully paid equity share of MOL of a face value of Re 1.
The listing of MFL as a separate and independent entity on the exchanges is aligned with the long-term vision of the management, said the company's Chairman and Managing Director Maulik Patel. The restructuring allows a focused strategy and specialisation of sustained growth for both the businesses, simplifying the holding structure, he added.
For the quarter ending June 2021, Meghmani Organics net profit more than doubled to ₹68 crore whereas its revenu was up 66% to ₹498 crore as against ₹299.14 crore year-on-year (YoY).
Similarly, Meghmani Finechem's net profit also doubled to 36.96 crore whereas the company's revenue surged over 110% to ₹290 crore as compared to ₹137 crore in the year-ago quarter. MFL, incorporated in 2007, is a manufacturer of Chlor-alkali products and value-added derivatives. The company has state-of-the-art manufacturing facilities in Dahej, Gujarat.