Deepak Nitrite Fire: Shares fall over 5% after massive explosion at firm’s Vadodara facility

Shares of Deepak Nitrite fell over 5 percent in early trade on Friday after a fire broke out at the company’s Nandesari facility located on the outskirts of Vadodara on Thursday.

After six consecutive days of gain, the stock opened with a loss of 4.66 percent, however recovered some of its initial losses later.

At 10.12 am, the scrip is trading at Rs 1,984.25 per share, down 2.99 percent or 61.10 points on the BSE.

Deepak Nitrite intraday stock chart (source: BSE)

The stock has fallen over 20 percent year-to-date (YTD).

Deepak Nitrite is an Indian chemical manufacturing company with facilities located in Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra and Hyderabad.

The company used the the Nandesari facility to produce basic intermediates  (BI) and fine and specialty chemicals (FSC). The BI produced at the plant contributed revenue of around 19 percent while the FSC segment contributed  12 percent to the company's income.

“We are monitoring the situation closely. The safety and well-being of all our employees, and that of the communities around, is of foremost priority to us,” the company said in a statement.

Post the eruption of the accidental fire, Vadodara deputy commissioner AB Gor told ANI that there was no causality, however seven workers had to be hospitalised due to difficulty in breathing.

700 people living in the vicinity of the factory had to be shifted to safer places even as the quantum and impact of damage caused by the fire is being assessed, officials said.