Chemical Stock Hits 5% Upper Circuit as Company Considers Raising ₹500 Cr

Synopsis: The share of this company hit a 5 percent upper circuit after announcing a fundraise plan, with the proposal being evaluated at a valuation of around Rs 500 crore.

The share of this company, which specializes in trading chemicals, including dyes intermediates, detergent chemicals, and water treatment chemicals, came into focus today after the it fund raise announcement.

With a market capitalization of Rs 217 crore, AVI Polymers Ltd’s shares on Wednesday made a day high of Rs 23.10 per share, up by 5 percent above its previous day’s close price of Rs 22 per share. The share of this company gave a return of 400 percent over the last five years.

What’s the news

The Board will review a plan to raise funds by issuing shares or other securities through methods like qualified institutional placement, private placement, or preferential allotment. This plan will need approvals from regulators and shareholders before it can go ahead.

The fundraising is being considered at around Rs 500 crore valuation and is still under evaluation. The company may also consider acquisitions through share purchases or share swaps as part of its plan to grow its business and expand its market presence.

The Board will also consider and approve the addition of new objects in the Memorandum of Association to expand into areas such as information technology, software development, system integration, digital platforms, and related technology services, along with any other business activities as may be decided by the Board. 

About the Company

Avi Polymers Limited, established in 1993, is engaged in manufacturing and trading polymer compounds and speciality chemicals. Over time, it has expanded into polymer materials, chemical intermediates, and water treatment solutions, helping it serve multiple industries and maintain a stable presence across diverse business segments.

The company has evolved into a broader solutions provider by adding trading activities and focusing on end-to-end offerings. In recent years, it has also shifted towards innovation and technology-led opportunities through its subsidiary, aiming to build new growth avenues and remain relevant in changing market conditions.

Financial Highlights: Revenue from operations grew to Rs 150.28 crore in Q4 FY26 from Rs 0.00 crore in Q4 FY25, indicating full category creation. Profit before tax jumped 1,288 percent to Rs 13.78 crore from Rs 0.99 crore, while net profit surged 1,278 percent to Rs 10.24 crore from Rs 0.74 crore.

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