Chembond Chemicals Limited announced that its Promoter and Managing Director, Nirmal Shah, has increased his stake in the company through a series of open market purchases on the National Stock Exchange (NSE).

Acquisition Details

Nirmal Shah acquired a total of 14,043 equity shares over three trading sessions:

• 5,000 shares
• 5,000 shares
• 4,043 shares

Impact on Shareholding

As a result of these transactions, Shah's shareholding in Chembond Chemicals has increased from 36,04,286 shares (13.40% of the total voting capital) to 36,18,329 shares (13.45% of the total voting capital). This represents a 0.05% increase in his stake in the company.

Company Overview

Chembond Chemicals Limited, headquartered in Navi Mumbai, is primarily engaged in the manufacture of specialty chemicals. The company's total equity share capital remains unchanged at Rs. 13,44,82,880, comprising 2,68,96,576 shares of Rs. 5 each.

Regulatory Compliance

The disclosure of this acquisition was made in compliance with the Securities and Exchange Board of India (SEBI) regulations for substantial acquisition of shares and takeovers. The company filed the necessary disclosures with both the BSE Limited and the National Stock Exchange of India Limited.

Recent Financial Performance

In its most recent financial results, Chembond Chemicals reported:

Note: Earnings Per Share is not annualized

These figures demonstrate the company's operational performance and profitability.

The recent share acquisition by the promoter may be viewed as a sign of confidence in the company's future prospects and strategic direction.

Chembond Chemicals , a specialty chemicals manufacturer, has reported a net profit of Rs 602.86 crore for the fiscal year, marking an 18.9% decrease from Rs 743.03 crore in the previous year. The company's revenue from operations saw a modest increase, reaching Rs 5,990.04 crore compared to Rs 5,886.05 crore in the preceding year.

Corporate Restructuring

The company recently completed a significant corporate restructuring initiative. A composite scheme of arrangement involving the demerger of construction chemicals and water technologies business from Chembond Material Technologies Limited and the amalgamation of Chembond Clean Water Technologies Limited was approved by the National Company Law Tribunal (NCLT) on April 7. The scheme took effect from April 1.

Share Allotment

As part of the restructuring, shareholders received 2 equity shares of Rs 5 each for every 1 share held in the demerged company. The allotment of 2,68,96,576 shares was approved by the Allotment Committee of Chembond Chemicals on May 13.

Financial Performance

The company's basic earnings per share (EPS) stood at Rs 2.24, down from Rs 2.76 in the previous year. This decline in EPS aligns with the overall decrease in net profit.

Consolidated Results

On a consolidated basis, Chembond Chemicals reported more robust figures:

The consolidated results show a slight improvement in the company's overall performance, with a 3.19% increase in revenue and a 2.98% rise in net profit.

Balance Sheet Highlights

As of the end of the fiscal year, the company's consolidated balance sheet showed:

• Total Assets: Rs 21,612.28 crore
• Total Equity: Rs 17,482.41 crore
• Non-Current Liabilities: Rs 325.43 crore
• Current Liabilities: Rs 3,804.44 crore

Future Outlook

While the standalone results show a decline in profitability, the consolidated figures present a more optimistic picture. The recent corporate restructuring is likely to streamline operations and potentially lead to improved efficiency in the coming years. Investors and analysts will be watching closely to see how these changes impact the company's performance in the specialty chemicals sector moving forward.

Chembond Chemicals primarily operates in the specialty chemicals manufacturing segment, and the restructuring appears to be a strategic move to focus on its core competencies and optimize its business structure.