homemarket NewsAmi Organics gains 8% after subsidiary begins manufacturing of Lithium ion battery cell products
Ami Organics gains 8% after subsidiary begins manufacturing of Lithium-ion battery cell products
Ami Organics Share Price | In a stock exchange filing, the Surat-based company said that its subsidiary Ami Organics Electrolyte Pvt Ltd has commenced its regular commercial operations for manufacturing and supply of products for Lithium-ion battery cell.
Shares of speciality chemicals manufacturer Ami Organics surged more than 8% on Monday after the company announced that its subsidiary began the manufacturing and supply of products for Lithium-ion battery cells.
In a stock exchange filing, the Surat-based company said that its subsidiary Ami Organics Electrolyte Pvt Ltd has commenced its regular commercial operations for manufacturing and supply of products for Lithium-ion battery cell.
Lithium-ion battery cells are widely used in various applications, including smartphones, laptops, electric vehicles (EVs), energy storage systems (ESS) and many other portable electronic devices. The Li-ion batteries are used widely for their high energy density, long cycle life, and relatively lightweight compared to other available options.
Saurabh Mukherjea, Founder, Marcellus Insvt Managers, said the lithium ion piece is a different part of Ami Organic based out of Noida. The company acquired the business couple of years ago he told CNBC-TV18. He said looking at India's import and export data, they figured this business is a high margin that Ami is involved in. He said, the company is supplying not just for the EV but also the semiconductor ecosystem. "We feel that the price that we were paying for that block deal that took place a month ago, we were getting a credible supplier to Divi’s Lab and to some of the largest European pharma manufacturers, and a company which could play the semiconductor cycle and the EV cycle. So you are getting two for the price of one and thus the entry into any of Ami Organics in our little champ’s portfolio.
Last month, Chovatia family divested a 12.5% stake in the pharmaceutical company for ₹475 crore through open market transactions. The Chovatia family was holding a 17.7% stake in Ami Organics as of the September quarter.
In December, Ami Organics announced the establishment of a new greenfield manufacturing facility in Ankleshwar, Gujarat, with an investment of approximately ₹200 crore. This initiative reflects the company's dedication to strengthening its presence in the advanced pharmaceutical intermediates sector.
The company had earlier announced about developing two products - one liquid electrolyte additive to increase the electrolyte capacity of lithium batteries and one for solid batteries.
At 12.40pm, shares of Ami Organics were trading 8.07% higher at ₹1,174.25 on January 29.
First Published: Jan 29, 2024 12:42 PM IST
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