Specialty chemicals is currently the theme on the Street and the rise of National Peroxide is in the same vein. The stock price today soared over 11% to Rs.2074 with an almost 7.5 times surge in volumes. Its 52-week high stands at Rs.2370.

Two weeks ago, McKinsey & Company had put out a report stating that India is the fastest growing major specialty chemicals market in the world and it is expected to grow to $40 bln by 2025 from $28 bln in 2018.

The report stated that cosmetic chemicals, adhesives and sealants, flavors and fragrances, printing inks, food additives and water management chemicals are a few emerging segments expected to grow fast and improve their relative positions amidst the 40 specialty chemical segments in India.

National Peroxide, a Wadia group company is India’s largest Hydrogen Peroxide manufacturer based in Kalyan, Maharashtra and it has been operating for the last 64 years. Hydrogen Peroxide is used in several industries which are non–edible oil refining, water and effluent treatment, paper – pulp bleaching, chemical synthesis, textile bleaching industry, sugar belching industry, metallurgy industry.

This news apart, the Board of National Peroxide, on Friday approved the composite scheme of arrangement amongst National Peroxide (transferee / demerged company) and Naperol Investment (transferor company) and NPL Chemicals (resulting company) and their respective shareholders and creditors.

As per the scheme, on demerger, NPL Chemicals will issue equity shares to shareholders of National Peroxide in the same proportion as their holding, which is 1:1 ratio. Naperol Investment will be amalgamated with National Peroxide and this means there will be a reduction in the entire share capital of NPL Chemicals held by National Peroxide.