This small cap company signed MoU with a Global Manufacturer of Electrolytes; Stock up by 10 per cent in two sessions!

The company's foray into electrolyte manufacturing complements the government's Make in India initiative

Yesterday, the shares of Ami Organics Ltd closed at Rs 1,144.60, up 6.5 per cent from previous close of Rs 1075.15, The stock spurt in volume by more than 28.93 times

Ami Organics Limited, a global leader in advanced pharmaceutical intermediates and specialty chemicals announced, on December 21, a significant development in its strategic expansion plans. The company has signed a non-binding Memorandum of Understanding (MOU) with a prominent global manufacturer of electrolytes for battery cells and allied materials. This collaboration aims to pave the way for manufacturing electrolytes in Gujarat, India.

In addition to the partnership, Ami Organics is set to sign another MOU with the Government of Gujarat during the upcoming Vibrant Gujarat Summit 2024. The proposed investment in this venture is expected to amount to Rs 300 crores, emphasizing the company's commitment to establishing a dedicated manufacturing facility for electrolytes business in the state.

This move aligns with Ami Organics' strategic vision to capitalize on transformative trends in the battery chemicals space. Moreover, the company's foray into electrolyte manufacturing complements the government's Make in India initiative. By venturing into the energy storage device sector, Ami Organics aims to foster innovative solutions while contributing to environmental sustainability.

Commenting on this development, Mr. Naresh Patel, Executive Chairman & Managing Director of Ami Organics Limited, expressed immense pride in announcing this landmark MOU. This collaboration marks a significant milestone for the company, as it establishes a long-term association with a globally recognized electrolyte manufacturer. Mr. Patel highlighted the confidence instilled by this partnership and the broader strategic goal of Ami Organics to broaden its scope in the battery chemicals space.

Ami Organics Limited, headquartered in Surat, is renowned for its research and development-driven approach in manufacturing specialty chemicals with diverse end usages. The company focuses on developing and manufacturing advanced pharmaceutical intermediates for regulated markets, generic active pharmaceutical ingredients (APIs), and New Chemical Entities (NCE). Ami Organics has a rich portfolio of over 520 Pharma Intermediates across 23 key therapeutic areas, showcasing its commitment to R&D in high-growth, high-margin chronic therapeutic areas.

Investors should keep an eye on this Small cap Pharma stock.

Disclaimer: The article is for informational purposes only and not investment advice.