Anupam Rasayan India shares jump as company signs LoI with Japanese speciality chemical firm

Shares of Anupam Rasayan India, a speciality chemical company, were in demand during Wednesday’s session on the exchanges. The stock jumped as much as 6 per cent to touch the day’s high level of Rs 1,150 per share on the BSE.

The buying interest can be attributed to the company’s announcement that it has signed a letter of intent (LoI) worth Rs 2,186 crore ($265 million) for the next 5 years with one of the leading Japanese speciality chemical companies to supply new-age patented life science active ingredients.

The product will be in the validation phase for the next 18 months and upon the successful validation, the supply will commence from the 2025 calendar year, the company said in a regulatory filing.

This product will be manufactured in the existing multipurpose manufacturing facilities, it added.

Speaking about the contract, Anupam Rasayan Managing Director Anand Desai said, "We are pleased to announce that we will be the primary global supplier of this new age patented life science active ingredient to one of the leading Japanese specialty chemical companies with the support of our Japanese business development team."

The company is fully backward integrated for this molecule and can provide supply chain assurance to the customer without dependencies on supplies from other geographies, he said.

The company has six manufacturing facilities in Gujarat with four facilities located at Sachin in Surat, while one of them is located at Jhagadia, Bharuch with an aggregate installed capacity of about 27,200 tonne as on December 31, 2022.

Anupama Rasayan share price NSE: Past performance

Anupama Rasayan shares in the last one year have gained almost 84 per cent as compared to a 19 per cent rise in the Nifty50. Year-to-date, the stock grew about 60 per cent as against a nearly 3 per cent rise in the benchmark index.