The shares of this leading manufacturer and supplier of specialty performance chemicals gained up to 18 percent after the company board approved the demerger of its business line.
With a market capitalization of Rs 752.03 Crores. Chembond Chemicals Ltd, On Wednesday, The shares were trading at Rs 6.10 a share, an increase of 1 percent from the previous closing price.
According to the company filing, Chembond Chemicals Ltd’s board of directors approved the demerger of its two business lines that is construction chemicals and water technologies into Chembond Chemical Specialties Ltd (‘CCSL’) while the company announced the amalgamation of Chembond Clean Water Technologies Ltd into CCSL.
Additionally, the company combined Chembond Material Technologies Pvt Ltd, Phiroze Sethna Pvt Ltd, and Gramos Chemicals (India) Pvt Ltd into CCL. Following regulatory clearance, CCL shareholders will receive two equity shares of CCSL for each equity share they currently own in CCL.
In addition to the paragraph above, the demerger will leave two separate listed entities that are aligned along business lines as of the scheme’s effective date. CCL will be renamed to Chembond Material Technologies Limited as part of the plan, and the coatings, sealants, and metal treatment chemicals will be housed there.
Additionally, the companies that handle water technologies, cleaning and hygiene, construction chemicals, and distribution will be housed under Chembond Chemicals Limited, a new name for CCSL.
The goal of the demerger is to free up capital for CCL shareholders while enabling both listed companies to assume leadership roles in their corresponding industries.
Looking into the company’s performance revenue increased by 1.8 percent from Rs 110 Crore in Q2FY23 to Rs 112 Crore in Q2FY24. During the same period, net profit increased by 87 percent from Rs 8 crore to Rs 15 crore.
Chembond Chemicals Ltd’s recent shareholding pattern, The Promoters of the company own 67.54 percent while Retail shareholders own a 31.18 percent stake in the company and Foreign Institutional Investors own a 0.69 percent stake.
Chembond Chemicals Ltd is a manufacturer of a wide variety of specialty chemicals, including products for industrial biotech, polymers, water treatment, and construction chemicals.
Witten by-: Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
