Agro-Chemical Stock Skyrockets 17% on Exciting Buyback Plan; Surges an Astonishing 128% Since June Low | Market News

Insecticides (India) Surges on Buyback News, Hits Record High

Last Updated: Aug 28, 2024 | 1:49 PM IST

The share price of Insecticides (India) skyrocketed to an unprecedented Rs 1,084.65, marking a 17% uptick in Wednesday’s intraday trading after the company announced plans to consider a share buyback on Friday, August 30, 2024. This surge propelled the stock beyond its previous high of Rs 965.35, recorded on August 12. Throughout August, the company’s market price has soared by 36%, and impressively, it climbed 128% from its June low of Rs 475.50 on the BSE.

At 12:58 PM, the share was trading at Rs 1,039.50, up by 12%, starkly outperforming the 0.29% rise in the BSE Sensex.

In its exchange filing, Insecticides (India) disclosed that its board of directors would convene on August 30 to deliberate on the buyback of fully paid-up equity shares via the tender offer route.

The broader market is seeing a significant wave of buybacks with 11 companies repurchasing shares worth Rs 5,388 crore in August. Furthermore, 10 other firms, like Aarti Drugs and Technocraft Industries, have greenlit their buyback plans. The surge in buyback proposals is attributed to upcoming changes in India’s tax regime, effective October 1, shifting the tax burden from companies to shareholders.

Insecticides (India), a manufacturer of agro-chemicals, pesticides, and technical products, serves both domestic and international markets. The company reported notable growth in Q1FY25, with a 57% increase in EBITDA and a 68% rise in profit after tax.

Management aims to focus on expanding premium product lines and driving demand in FY25, while keeping a close watch on margins and working capital. Initiatives like "Make in India" and "Aatmanirbhar Bharat Abhiyan" are expected to enhance the agrochemical industry’s global competitiveness by promoting domestic manufacturing, easing regulatory processes, and encouraging exports.

These government policies, alongside a proposed production-linked incentive system, could significantly boost domestic manufacturing capabilities, create jobs, and fortify India’s presence in the global agrochemical arena.

First Published: Aug 28, 2024 | 1:49 PM IST

Original Story https://www.business-standard.com/markets/news/agro-chemical-stock-soars-17-on-buyback-plan-zooms-128-from-june-low-124082800486_1.html
Category :
Tags: