Ami Organics Shares Rose 4% on Plans to Acquire 55% in Baba Fine Chemicals

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On April 24, Ami Organics shares jumped over 4% in early trade after the company’s plan to acquire a 55% stake in Baba Fine Chemicals.

The acquisition is being implemented at an aggregate consideration of Rs 68.21 crore and is probable to be accomplished within six months from approval.

Baba Fine Chemicals is tangled in manufacturing custom speciality chemicals used in the semiconductor business. The company’s aggregate revenue rose 28.7% YoY in FY23 to Rs 47.07 crore.

The company also scripts Ami Organics’ foray into the high entry barrier semiconductor production. The acquisition is focused on Ami Organics’ stratagem of escalating its speciality chemicals separation to emphasise niche products manufactured using advanced technology with low competition and huge entry barriers.

At 11.46 am, Ami Organics’ shares were quoting at Rs 1,070.90, up 1.35% on the National Stock Exchange. The stock also touched an intraday high of Rs 1,099.75.

The company’s 2 lakh shares have changed hands on the exchanges, as against the one-month daily traded average of 83,000 shares.

The company has established two electrolyte additives in lithium-ion batteries, anticipating marketable customer orders. Thus, the acquisition will give Ami Organics access to complementing Baba Fine Chemicals products focused on the electronic industry and, mainly, semiconductors.

Ami Organics displayed a 14.45% YoY rise in its December quarter’s net profit to Rs 22.8 core. Revenue in the quarter also plunged around 8% to Rs 152.36 crore.

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