The shares of the leading industrial salt exporter dropped by 4.8% to an intraday low of ₹658 per share on Thursday’s trade following a news report indicating that Foreign Institutional Investors (FIIs) are likely to sell a stake in the company.
On Thursday’s early trade, At 1:20 p.m., Archean Chemical Industries Ltd. shares were trading at ₹665 share on the Bombay Stock Exchange, down 3.82 percent from the previous close. The company has a market value of ₹ 8,217 crore.
What News: As per the report, Foreign Institutional Investor India Resurgence Fund Scheme 1 & Scheme 2, and Piramal Natural Resources are likely to sell a 10.13% stake in Archean on thursday. The floor price is set at Rs 655 per share with a deal size of Rs 818.7 crore.
About the company: Archean is a leading specialty marine chemical manufacturer in India focused on producing and exporting bromine, industrial salt, and sulfate of potash across the world.
Archean Chemical Industries is a prominent exporter of industrial salt, shipping all its production to Japan and China. It operates one of the world’s largest salt works at a single location, equipped with three washeries each capable of processing 200 tons per hour.
Additionally, Archean Chemical has significant manufacturing capacities: 42,500 metric tonnes per annum (MTPA) for Bromine, 3,000,000 MTPA for Industrial Salt, and 130,000 MTPA for Sulphate of Potash.
In terms of revenue, the company derives 26% from the Indian market and 74% from international markets. It serves a total of 69 clients, including 39 global entities such as Sojitz Corporation Japan, UniBrom, and Tianyi Group.
Financials: The Archean Chemical Industries experienced a decline in revenue of 26 percent, moving from ₹382 crore in Q4FY23 to ₹283 crore in Q4FY24. And during this period, net profit declined by 56 percent, rising from ₹137 crore to ₹60 crore
Over the past 12 months, shares of Archean Chemical Industries have surged by 23 percent. However, in the last six months, the share value has increased by 3 percent.
Written by Omkar Chitnis
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