Piramal Enterprises, Navin Fluorine surge on fluorochemicals JV

NEW DELHI: Shares of Piramal Enterprises and Navin Fluorine rose over 4 per cent each in trade on Thursday, after the pharma-to-financial services group, and Navin Fluorine International Ltd, jointly said on Wednesday that they have agreed to form a joint venture company to develop, manufacture and sell specialty fluorochemicals.

Piramal will hold 51 per cent of the equity share capital of the proposed joint venture company and the remaining 49 per cent will be held by Navin. In the first phase of development, the JV is expected to invest around Rs 120 cr in India.

Reacting to the news, Piramal Enterprises rose as much as 4.3 per cent while Navin Fluorine International rallied as much as 5 per cent in trade.

At 10:00 a.m.; Navin Fluorine was trading 2.8 per cent higher at Rs 610.05 and Piramal Enterprises was up 2.7 per cent to Rs 699.

The joint venture in which Piramal will hold 51 per cent stake, leverages Navin Fluorine's fluorochemicals capabilities and Piramal's strong presence in healthcare, said media reports.

With the increasing importance of fluorine in life sciences, there is considerable potential to exploit synergies between the two companies.