Shares of Deepak Fertilisers & Petrochemicals Corporation gained 6 percent on Friday, December 16, after the board of the company approved a corporate restructuring plan to demerge its mining chemicals and fertilisers businesses with the objective of unlocking the growth potential of each of the businesses.
The scheme provides for the demerger of the TAN Business (Mining Chemicals) from STL to Deepak Mining Services Private Ltd (DMSPL), and the amalgamation of Mahadhan Farm Technologies Private Limited (MFTPL) with STL.
STL and DMSPL are wholly owned subsidiaries of the company and MFTPL is a step-down subsidiary of the company.
During Friday’s trade, the stock opened at a price of Rs. 821.80 per share against the previous close of Rs. 811.70 per share and grew further during the early trade to an intraday high of Rs. 861.75. It was trading at ₹845 apiece, up by 4.1 percent, at 11:45 a.m. on the NSE.
The stock touched a 52-week high of Rs. 1,062 on October 21, 2022, and a 52-week low of Rs. 355.20 on December 20, 2021, indicating that at the current level, the stock is trading nearly 58 percent above its 52-week low and 20.43 percent below its 52-week high.
In the past one month, the stock has increased by nearly 3.27 percent. It has shown a positive growth of over 41 percent in the last six months. In the last one year, the stock has gained almost 124 percent.
Over the past few years, the DFPCL group has significantly improved its operational performance, generated cash flows and strengthened balance-sheet whilst focusing on increasing investments in greenfield expansions.
The proposed corporate restructuring shall considerably help create strong independent business platforms within the larger DFPCL brand umbrella, hence enhancing stakeholders’ value over time, said Sailesh C Mehta, Chairman and Managing Director of the company.
As per a MintGenie poll, one analyst recommends a 'strong buy' call on the stock.