SRF board approves bonus issue

SRF board approves bonus issue

The board of SRF has approved Bonus Issue of equity shares in the proportion of 4 equity share for every 1 equity shares held by the shareholders of the company as on the record date, subject to the approval of shareholders through Postal Ballot in compliance with the applicable laws.
The stock price of SRF hit a rercord high of Rs 10,289.05 apiece, rising 6% on the BSE.
In the past three months, SRF has outperformed the market by surging 50%, as compared to 10% rise in the S&P BSE Sensex. SRF is a chemical based multi-business entity engaged in the manufacturing of industrial and specialty intermediates.

In Q1FY22, SRF’s consolidated net profit more-than-doubled at Rs 395.3 crore against Rs 176.9 crore in Q1FY21. The company reported a 75% year-on-year (YoY) growth in revenue at Rs 2,699 crore compared with Rs 1,545 crore in the corresponding quarter of the previous fiscal. Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved 50 basis points (bps) to 24.6%.
The specialty chemicals business which accounts for 42% of total revenue, performed well owing to higher sales from exports and domestic markets. The fluorochemicals business witnessed higher sales volumes in the refrigerants and the blends segments, with better sales realisations, especially from the export markets.

To meet the growing demand for refrigerants in the domestic and exports market, the company’s board approved a project for integrated expansion of fluorocarbon based refrigerant capacity at Dahej at a projected cost of Rs 550 crore. The same is expected to be completed in twenty-four months. To cater to the growing power requirements of new and upcoming plants at Dahej, the board has also approved the installation of 200 KV grid at a projected cost of Rs 135 crore.
In October 2020, SRF had raised Rs 750 crore by allotting 1.76 million equity shares through qualified institutional placement (QIP) at an issue price of Rs 4,250 per equity share.

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