Shares of speciality chemicals manufacturer Aether Industries rose nearly 3% on Thursday after it reached a deal with Saudi Aramco Technologies to produce and commercialise a fusion polyol technology and product line.

Shares of Aether Industries were trading at Rs 933.30 per share on the BSE at 9:46 am today, 3% above its previous close. The stock had touched a high of Rs 936.50 per share earlier in the day.

According to a statement from the chemical manufacturer, Aether Industries has signed a letter of intent (LoI) with Saudi Aramco for this purpose.

“The Letter of Intent contains preliminary terms for the finalisation of a detailed licensing agreement for the manufacture and commercialisation of Converge polyol technology and product range in Aether, whose manufacturing process has previously been co-developed by Saudi Aramco and validated on a commercial scale with Aether,” Aether said in a statement.

Saudi Aramco Technologies and Aether have previously developed and validated this manufacturing process on a pre-commercial scale. Aether Industries is targeting Rs 150-200 crore in revenue from the agreement.

Over the past few years, Aether has partnered with Aramco on the CRAMS (Contract Research and Manufacturing Services) business model.

Aether shares have given returns of over 11% over the past three months.

Aether Industries’ net sales stood at Rs 167.13 crore in December 2022, up 10.48% from Rs 151.28 crore in the same period in 2021. December 2022 quarterly net profit stood at Rs 35.04 crore, up 37.94% from Rs 25.40 crore in December 2021.