SRF hits a new high

SRF is amongst the top gainers on the BSE today. With volumes surging over 7 times, the stock hit a 52-week high at Rs.972 and it is currently up 8% at Rs.950.

The stock has shot up after the company announced today that it has acquired Global DuPont Dymel, pharmaceutical propellant business of American chemical giant DuPont for US$ 20 million. This is to be in cash.

Under this deal, SRF will own the DuPont’s ‘Dymel’ brand and will also receive the technology and know-how for setting up its own ‘current Good Manufacturing Practices’ (cGMP) facility for manufacturing HFC 134a Pharma grade. DuPont and SRF have entered an agreement under which DuPont will supply SRF with product until SRF’s production facility is approved.

SRF is the only Indian manufacturer of HFC 134a and also has the rare distinction of developing the product with indigenous technology. For SRF, this transaction provides immediate access to DuPont’s technology, brand and customers, thus enabling an instant entry into the niche pharmaceutical segment at a global level.