The share price of this company, which specializes in manufacturing lead, alloys, and plastic additives, is in focus following the board’s approval of a Qualified Institutional Placement (QIP) issue at Rs 902.93 per share. This move is expected to raise capital for the company, drawing attention from investors and analysts alike.
Share Price Movement
The share price of Pondy Oxides and Chemicals Limited reached an intra-day high of Rs.930.00 per share on Wednesday, rising 2 percent from its previous close of Rs.912.15 per share. Over the past 6 months, the share has delivered returns of over 160 percent.
What Happened
Pondy Oxides & Chemicals announced that its board has approved the launch of a Qualified Institutional Placement (QIP) of equity shares, with a floor price set at Rs.902.93 per share. The issue will open on 17th December 2024.
The floor price represents a 0.82 percent discount to the previous closing price of Rs.910.35 on the BSE. The company may offer a discount of up to 5 percent on the floor price. The final issue price will be determined in consultation with the appointed book running lead manager.
Pondy Oxides plans to utilize the proceeds for funding working capital needs, capital expenditure for setting up a recycling and processing unit in Thiruvallur, Tamil Nadu, and for general corporate purposes. Known for its leadership in recycling and manufacturing, Pondy Oxides is a pioneer in the production of lead and lead alloys in India.
Capacity Expansion
Pondy Oxides and Chemicals plans to increase its lead production capacity by an additional 72,000 metric tonnes per annum. The company is also expanding its capabilities in existing sectors while branching into new areas like lithium-ion technology and forward integration. POCL is set to invest Rs.100 crore to fund these upcoming projects in FY25.
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International Formulations
Pondy Oxides And Chemicals Ltd. exports 60 percent of its manufactured products. They have a good presence in the international markets, exporting and importing goods from countries including Tanzania, Malaysia, and a host of other countries.
Shareholding Pattern
As of the October 2024 shareholding pattern, promoters hold a 43.76 percent stake in Pondy Oxides and Chemicals Ltd. Foreign Institutional Investors (FII) hold 0.25 percent, Domestic Institutional Investors (DII) hold 0.32 percent, and retail investors hold 55.68 percent. Notably, ace investor Dolly Khanna holds a 1.10 percent stake in the company.
Financials
Turning towards the financials of the company, Pondy Oxides and Chemicals Ltd. reported Q2 FY25 revenue of Rs.572 crore, up remarkably by 46 percent from Rs.393 crore in the same quarter last year. Profit After Tax (PAT) increased by 113 percent to Rs.17 crore, compared to Rs.8 crore in the same period.
About the company
Pondy Oxides and Chemicals Ltd. (POCL) is recognized as one of India’s leading manufacturers of lead alloys. It operates across multiple sectors, including metals, metallic oxides, PVC stabilizers, and lead-acid batteries.
The company’s core activities involve converting various forms of lead scrap into lead metal and alloys. The company is headquartered in Chennai, Tamil Nadu.
Written by – Siddesh S Raskar
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