SRF rallies over 10%, hits 52-week high on acquisition of DuPont Dymel

MUMBAI: SRF Ltd rallied as much as 10.5 per cent in trade on Friday to hit its fresh 52-week high of Rs 972, after the Arun Bharat Ram-led company announced that it acquired DuPont's arm DuPont Dymel in an all-cash deal.

The company would pay a sum of $20 million, or a tad over Rs 120 crore for the Fluorochemicals business.

Under the transaction SRF will own Du Font’s ‘Dymel’ brand and receive the technology and know-how for setting up its own ‘current Good Manufacturing Practices’ (cGMP) facility for manufacturing HFC 134a Pharma grade, the company said in a filing to stock exchanges.

DuPont will supply SRF the product from its existing facility till SRF’s facility is approved. The consideration for the transaction is USD 20 million payable in cash.

SRF has two plants for manufacture of technical grade of HFC 134a. It is envisaged that HFC 134a pharma will form a part of the downstream products from these plants. It is SRF’s endeavour to constantly move up the value chain and this acquisition is a move in that direction.

At 09:30 a.m.; the stock was at Rs 962.95, up 9.47 per cent, on the BSE. It rallied 10.49 per cent to touch high of Rs 972 in early trade.