Shares of Narmada Gelatines were locked in 5 per cent upper circuit at Rs 513.55 per share on Wednesday amid heavy volumes. The spike comes ahead of turning ex-date for special interim dividend of Rs 100 per share.
The stock of specialty chemicals company froze upper circuit for sixth straight day and zoomed 76 per cent during the period. So far in December, the stock skyrocketed 120 per cent from Rs 233.15, which it had touched on November 30, 2022. In comparison, the S&P BSE Sensex was down 0.65 per cent, during the same period.
Narmada Gelatines has fixed Monday, December 19, as record date to ascertain members who will be entitled for special interim dividend for financial year 2022-23. On December 7, the board of directors of the company declared a special interim dividend of Rs 100 per equity share (i.e. 1000 per cent).
Around 227,000 equity shares, which represented 3.75 per cent of total equity of the company, changed hands, with pending buy orders of 18,948 shares on the BSE, the exchange data shows.
Currently, the stock is classified in the X category on the BSE. X group consists of all those stocks which are only listed on BSE and settled on a trade-to-trade basis. The company has total 6.05 million outstanding shares as of September 2022, the shareholding pattern data shows.
Narmada Gelatines is engaged in manufacturing and sale of gelatine and related products like ossein and di-calcium phosphate (DCP).
The management believes that the global gelatin market is currently being driven by an increased demand for functional and convenience foods, growth in end-user industries, rising health awareness, and growth in emerging markets.
“Gelatin has multiple applications across various industries including food & beverage, pharmaceutical, biomedical, personal care, and other technical areas. The food and beverage sector currently represents the largest end-use sector followed by nutraceuticals, pharmaceuticals, cosmetics and others,” the company said.