Meghmani Organics spiked 10 per cent on Epichlorohydrin project

On Monday, Meghmani organics informed the bourses that its subsidiary Meghmani Finechem Limited (MFL), in which it owns 57 per cent stake, is planning to foray into and would like to announce setting up of project of Epichlorohydrin.

The said project is having capacity of 50,000 tonnes per annum. This will be based on Epicerol technology which is obtained from 100 per cent renewable sources.

The total capex for the said project is amounted to Rs. 275 crore and is likely to generate revenue of around Rs. 460 crore per annum.

With commencement of this plant, Meghmani will become first manufacturer of Epichlorohydrin in India which is currently entirely imported to India. This project would further drive the demand for this product, going ahead.

The company has earlier set up Caustic Potash and Chloromethanes which are in advance stage of manufacturing of Hydrogen Peroxide. This is likely to go on stream in FY20.

On Monday, the stock of Meghmani Organics opened at Rs. 47.45 and gained nearly 10 per cent and made an intraday high of Rs. 52.00 on the BSE. The stock had touched an intraday low of Rs. 47.25. Finally, the stock settled the day at Rs. 51.40, up 8.32 per cent on the BSE.