Navin Fluorine jumps 20 per cent on multi-year deal

Mumbai-based fluorochemicals manufacturer, Navin Fluorine International Limited today informed the bourses that the company has entered into a multi-year contract with a global company for the manufacture and supply of a High Performance Product (HPP) in the fluorochemicals space.

The duration of the contract is of seven years and amounts to USD 410 million. The said product is not forming a part of the company’s current portfolio as enhancing product portfolio would help in diversifying the business.

The capex and project will be executed through its wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited (NFASL). It will invest around USD 51.5 million for setting up dedicated manufacturing facility and USD 10 million for setting up captive power plant.

The facility will be located at Dahej (Gujarat) and the capex will be funded through a mix of internal accruals and debt. The supplies are expected to commence from Q4FY22.

Reacting to this positive development, the stock of Navin Fluorine International spiked nearly 20 per cent to Rs 1,455 on BSE.