This speciality chemical company shares close over 8% higher amid restructuring plan of one its units

The shares of recently listed Ami Organics surged over 12 per cent to touch the day’s high level of Rs 981.45 per share on the BSE intraday trade on Thursday. The stock surged after the company made an announcement that it plans to restructure one of its Gujarat factories. 

The counter was trading mute till afternoon, however, it witnessed a buying spree immediately after the announcement and eventually closed over 8 per cent higher to Rs 947 per share on the BSE. On September 09, 2021, the scrip had hit a 52-week high of Rs 1438.5 per share on the BSE.

Ami Organics in its filing to exchanges said, “Company intends to restructure the Ankleshwar production facility and utilize the same for the expansion of pharma intermediate business to support future growth requirement.” 

“The planning, design, and engineering for proposed Capex at Ankleshwar unit is under progress and further details will be shared once the capex plan is finalised, it said in a filing. 

Ami Organics has already received Environment Clearance for the proposed restructure of the Ankleshwar unit and assures that There shall be no revenue loss and employee layoffs because of the transfer of the aforementioned production operation from Ankleshwar to the Jhagadia unit. 

Besides, it also added that the shifting of speciality chemicals business at a single location will help the company achieve better utilization of the plant and improve operational efficiency.  

According to release, the Ankleshwar facility had been acquired from Gujarat Organics Limited and will be transferred to one single location at the Jhagadia facility. 

The specialty chemicals company had made a strong debut on September 14, 2021, at a 49 per cent premium to Rs 934.55 per share as compared to the upper end of the issue price of Rs 610 per share on the BSE. 

The stock so far since its debut has eroded all its listing gains are and trading mute for the last couple of months, except for today’s rise on the exchanges.