Mangalore Chemicals spikes as promoter releases pledge

The company's promoter released a pledge on 80 lakh shares of Mangalore Chemical & Fertilizers Limited (MCF). On Wednesday, the stock of MCF was buzzing and moved up by more than 3 per cent in the morning session.

The company's promoter Zuari Agro Chemicals Limited released 80 lakh shares pledged with HDFC on repayment of a loan on December 7. MCF is a subsidiary of Zuari Agro Chemicals Limited, an Adventz group company, which holds 53.03 per cent stakes in the company. The company provides plant nutrition, plant protection and other agrochemical products.

Recently, CARE Rating agency revised the rating of the company's Long-term/ Short-term Bank Facilities to CARE BBB+; Stable / CARE A3+ from CARE BBB; Stable / CARE A3. The rationale for this credit rating revision includes lower interest cost and improvement in gross cash accruals. The company recorded healthy volume growth in fertilizers and efficient raw material procurement. The company has made investments in a natural gas project to significantly cut energy consumption required for urea production. 

At 10:31 hours, the stock of MCF was quoting Rs. 40.50 per share, up by 3.18 per cent, when the benchmark index BSE Sensex was at 36,471.99, 124.91 points or 0.34 per cent on Wednesday.