scorecardresearchFACT stock up nearly 17% after announcement of land acquisition by Kerala

FACT stock up nearly 17% after announcement of land acquisition by Kerala government

Updated: 13 Apr 2023, 11:55 AM IST
TL;DR.

Shares of Fertilizers and Chemicals Travancore (FACT) soared during Thursday's trade after Kerala govt announced plans to acquire 15 acres of land owned by the company for a Science Park.

The Fertilisers and Chemicals Travancore Limited (FACT) was incorporated in the year 1943 as the first large-scale fertilizer plant in India at Udyogamandal, Kochi, Kerala.

The Fertilisers and Chemicals Travancore Limited (FACT) was incorporated in the year 1943 as the first large-scale fertilizer plant in India at Udyogamandal, Kochi, Kerala.

Shares of Fertilizers and Chemicals Travancore (FACT) rallied 16.9 percent on Thursday, April 13, after the Kerala state government announced its plans to acquire 15 acres of land owned by the company at Eloor and hand it over to Cochin University of Science and Technology (Cusat) for setting up a Science park.

During Thursday’s trade, the stock opened at a price of Rs. 294 per share against the previous close of Rs. 285.40 per share and grew further during the early trading session to touch an intraday high of Rs. 333.70.

It was trading at 327.20 apiece, up by 14.65 percent, at 11:10 a.m. on the NSE.

The stock touched a 52-week high of Rs. 390 on January 02, 2023, and a 52-week low of Rs. 82.35 on June 20, 2022, indicating that at the current level, the stock is trading over 290 percent above its 52-week low and 16 percent below its 52-week high.

The stock has grown almost 50 percent in the last one month. Moreover, in the last six months, it has yielded a return of nearly 185 percent. In the past five years, it has gained over 466 percent.

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Stock price chart of Fertilisers and Chemicals Travancore

Tuesday saw the Industries Minister and Cochin University of Science and Technology Vice-Chancellor hold discussions with FACT officials to acquire land for a Science Park. The state government has already sent a request to FACT expressing its willingness to acquire the land. A board meeting is to be convened to discuss the request. Once the approval is given, it will be sent to the Union government for its nod.

The land of FACT at Ambalamedu was previously taken over by the state for the setting up of a Petrochemical Park. The same procedures will be followed for the Science Park. A portion of the land acquired was then given to Bharat Petroleum Corporation Ltd.

The chemical company reported a more than two-fold increase in its net profit to 165.79 crore for the third quarter of FY22-23 (Q3FY23), compared to 43.59 crore in the corresponding quarter of last year. The company’s turnover for the period also saw a 43 percent increase to 1,722 crore, up from 1,208 crore during the same period in 2021-22.

FACT was incorporated in the year 1943 as the first large-scale fertilizer plant in India at Udyogamandal, Kochi, Kerala. The company is primarily engaged in manufacturing of complex fertilizers and ammonium sulfate.

 

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First Published: 13 Apr 2023, 11:55 AM IST