For the second day in a row, Meghmani Finechem (MFL) and Meghmani Organics (MOL) shares, which were listed on the stock exchanges on Wednesday, hit the 5% upper circuit band again on Friday.
Shares were seen trading at Rs 99.20 on NSE at 11.45 pm IST, it touched an intra-day high of Rs 99.20. The market cap of the company is Rs 3,509.54 Crores.
Meghmani Organics had separated its agrochemical and pigment divisions into Meghmani Organochem Ltd, and transferred MOL's other businesses (chloro-alkali and its derivatives) to Meghmani Finechem. Meghmani Organochem was eventually renamed Meghmani Organics Ltd, and its shares were relisted on the stock exchanges.
Meghmani Organics stockholders received 94 fully paid equity shares of MFL with a face value of $10 for every 1,000 fully paid equity shares of MOL with a face value of Re 1. MFL's listing on the exchanges as a separate and independent organisation is in line with the company's long-term strategy, according to Chairman and Managing Director Maulik Patel.
He said that the restructure provides for a more concentrated strategy and specialisation of continuous growth for both businesses, as well as a simpler ownership structure.
Meghmani Organics' net profit increased by 136.53 percent to Rs 68.57 crore in the quarter ending June 2021, compared to Rs 28.99 crore in the preceding quarter. In the quarter ending June 2021, sales increased by 66.52 percent to Rs 498.14 crore, up from Rs 299.14 crore in the preceding quarter.
Meghmani Finechem's net profit doubled to 36.96 crore, while revenue increased by almost 110 percent to 290 crore from 137 crore the year before. MFL is a producer of chlor-alkali products and value-added derivatives that was founded in 2007. Dahej, Gujarat, is home to the company's cutting-edge production facilities.