Shares of Anupam Rasayan soared about 4% on the morning of April 13 after the chemicals maker said it signed a deal with a Japanese multinational to produce and supply “three high-value” speciality chemicals.

The custom synthesis and speciality chemicals company signed a letter of intent worth $182 million (Rs 1,500 crore) over the next seven years with a leading Japanese multinational to manufacture and supply three high-Value speciality chemicals, Anupam Rasayan said in a regulatory filing.

With this agreement, Anupam Rasayan quickly added another well-known brand to its customer base. It said the three molecules would be advanced intermediates for highly specialised polymers and liquid crystals.

“We will be the exclusive supplier of these molecules outside India, which is in line with our strategy to expand in fluoropolymers and electronics, manufacture high-value molecules and move up the value chain with customer support,” said Anand Sai, director of management.

The speciality chemicals specialisation has two verticals: speciality chemicals related to life sciences, such as those used in the agrochemical, personal care and pharmaceutical industries. Other speciality chemicals include speciality pigments and dyes and polymer additives.

Anupam Rasayan was trading 3.1% higher at Rs 978.55 on the BSE at 11:24 am. Since February 2023, the stock has risen 71%.

The market buzz is that high-net-worth individuals and a Middle Eastern long-only fund buy the company’s shares in hopes of better profitability.

The company’s margins have taken a hit over the past few quarters due to tight working capital and inventory buildup. Raw materials are piling up because the company hoped to secure an export order but did not get one. Now that the high-cost inventory has been utilised, the pressure on gross margins is expected to ease, a dealer said anonymously.

Unlike other chemical companies, Anupam Rasayan benefited from Europe’s energy crisis by signing two new contracts worth Rs 100 crore with a European agrochemical company, KR Choksey Shares & Securities said.

“The company is witnessing a change in trend as Indian Chemicals was selected as the preferred manufacturing partner for strategic products currently manufactured in Europe,” it said.