Shares of Valiant Organics gained 4 per cent to Rs 3,454 on the BSE on Monday, in an otherwise subdued market, ahead of turning ex-date on Thursday, December 24, 2020 for its 1:1 bonus issue. Stock of the pharmaceutical company has rallied 13 per cent in the past eight trading days.
The Company has fixed December 28, 2020 as the ‘Record Date’ to determine the eligible shareholders entitled to receive the bonus shares. The board of directors of the company on November 13, 2020 had recommended the issue of bonus shares in the ratio of 1:1 i.e. 1 bonus equity share for 1 equity share held in the company as on record date.
In the past three months, the stock has underperformed the market by gaining 20 per cent, as compared to a 23-per cent rise in the S&P BSE Sensex. It hit a record high of Rs 3,851 on November 5, 2020.
Valiant Organics is one of the most competitive producers of Chlorination, Ammonolysis, Acetylation, Hydrogenation and Methoxylationbased specialty products in India.
The company has increased the capacities of its hydrogenation products from the earlier 18,000 MT per annum to 26,000 MT per annum. Further, it increased the Ammonolysis capacity at Tarapur and Vapi plants from ~13,000 MT per annum to 16,000 MT per annum.
The management said the company is likely to commence operations of Para Amino Phenol (PAP) and Ortho Amino Phenol (OAP), which are import substitutes, in the second half of FY 2020-21. PAP has been identified as key intermediates of pharma products by the government, which is to be incentivised under recently announced PLI Scheme. The management is considering setting up a plant for Paracetamol with other drug intermediates and APIs in future.
On outlook, the management, in fiscal 2019-20 annual report, said the company is well prepared to take advantage of the growing opportunities in specialty chemicals as India’s specialty chemicals market sets itself on the growth path for the coming years, and with a rising need for specialty chemicals in the end-use domestic markets.
“As we add specialty chemicals to our portfolio and continually update our product mix, we remain well positioned to capture this growth and become a leading specialty chemicals player in India, delivering sustainable stakeholder growth,” it said.