Shares of Aether Industries Limited started its trading session at Rs 989.95 and currently trades at Rs 985, gaining around 6 percent compared to the previous closing levels of Rs 929.85.
The company has a market capitalization of Rs 12,258 crores. Year-to-date, the scrip has gained about 16 percent ranging from Rs 848.10 to the current levels.
Today’s stock movements were observed after the company, through a regulatory filing over the exchange, informed that it has executed a Letter of Intent (LoI) with a leading global ‘Oil Field Services’ company based in the United States of America.
The LoI paves the way to execute a Strategic Supply Agreement (SSA) between both companies within a period of three months of the LoI execution.
The LoI mentions four strategic products that will be contract manufactured by Aether as the first set of products in the partnership. The individual volumes of the four products are specified in the LoI, and the total comes up to 1,325 Metric Tons (MT) every month which is equivalent to 16 Kilo Tons Per Annum (KTA) or 16,000 MT per year.
Aether Industries Limited is involved in the business of manufacturing specialty chemicals. Its products are applied in the agrochemical, coating, oil & gas, high-performance photography, etc.
The latest financial results of the company pertaining to FY22-23 portray an operating revenue of Rs 651 crores as compared to Rs 590 crores of revenues in the previous financial year. Moreover, the net profits increased from Rs 109 crores during FY21-22 to Rs 130 crores in FY22-23.
As per the shareholding data available for the March 2023 quarter, Promoters of the company hold a 87.07 percent stake, and Foreign Institutional Investors (FIIs) hold a 1.57 percent stake in the company.
Written by Amit Madnani
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