Chemical company's shares plunge on Gujarat pollution board's order to close manufacturing plant
Chemical manufacturing company Chemcon Specialty Chemicals on Saturday informed in an exchange filing that the company has received a communication from the Gujarat Pollution Control Board (GPCB) for its manufacturing plant situated in Vadodara, Gujarat directing closure of operations. Shares of the company slipped over 5% to ₹433.8 per share in Monday's early deals on the BSE.
The company will be representing to GPCB for withdrawal of the closure notice and shall be submitting all relevant documents for the same, Chemcon said in the BSE filing.
Vadodara-based Chemcon Speciality Chemicals Ltd is a manufacturer of specialised chemicals such as HMDS (Hexamethyldisilane) & CMIC (Chloromethyl isopropyl carbonate) which are predominantly used in pharmaceutical industry (pharmaceuticals chemicals) and inorganic bromides, predominantly used as completion fluids in the oilfields industry (Oil well completion chemicals).
The specialty chemical manufacturer's key customers including Laurus Labs Ltd, Aurobindo Pharma Ltd, and Ind-Swift Laboratories Ltd. It exports products to global markets covering the US, Germany, Italy, South Korea, Japan, the United Arab Emirates, Serbia, Russia, Spain, Thailand and Malaysia.
Chemcon Speciality Chemicals shares made their stock market debut last year in October after the ₹318-crore initial public offer (IPO) was subscribed a whopping 149 times. The company intended to utilize net proceeds from the fresh issue towards capital expenditure towards expansion of manufacturing facility, to meet working capital requirements and towards general corporate purposes. The stock has surged nearly 30% from issue price of ₹340 per share.