Aether Industries shares hit all-time high after specialty chemical maker inks pact with Saudi Aramco Tech
Aether Industries shares surged as much as 7.5 per cent to an all-time high on Friday, after the company announced the signing of a licensed pact with Aramco subsidiary Saudi Aramco Technologies.
Aether Industries shares hit an all-time high on Friday after the company announced the signing of a licensed pact with Saudi Aramco Technologies, a subsidiary of Saudi Arabian oil major Saudi Aramco. The stock of specialty chemical manufacturer Aether Industries – traded on the bourses with the symbol AETHER – jumped by as much as Rs 74 or 7.5 per cent to a record Rs 1,056 apiece on BSE, surpassing its previous peak of Rs 1,050 apiece.
Aether's pact with Saudi Aramco Tech
Aether Industries' license agreement with Saudi Aramco Technologies involves the commercialisation of the sustainable Converge polyols technology, according to a regulatory filing.
“The agreement formally initiates the company’s activities towards the manufacturing and commercialization at Aether of the Converge polyols technology and product series, the manufacturing process for which has been previously jointly developed and validated at pre-commercial scale by Aramco and Aether,” Aether Industries said.
Newly-listed Aether extends gains
The record high in Aether Industries shares, which debuted on the bourses in June 2022, translates to a 64.5 per cent premium over the upper end of the company's IPO price band.
Aether Industries' IPO, which hit the Street in late May 2022, concluded with a subscription of 6.3 times the total shares on offer.
What analysts say on Aether Industries
JM Financial initiated coverage on Aether Industries with a ‘buy’ rating and a target price of Rs 1,080 apiece – implying an upside of a further 2.3 per cent from the record high.
According to the brokerage, Aether Industries' robust R&D backbone enables it to keep innovating and consistently come up with new products, which gives it a strong competitive advantage and helps it offer substitutes for products currently being imported in large quantities from China.
The recent tie-ups with global majors, according to JM Financial, have strengthened Aether Industries; runway for long-term growth.
What does Aether Industries do?
Aether Industries is the sole manufacturer of chemicals such as 4-(2-methoxyethyl) phenol (4MEP) and 3-methoxy-2-methylbenzoyl chloride (MMBC) in India.
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