Shares of Navin Fluorine jumped 4.9 per cent after the chemicals maker announced that its board has approved capital expenditure for setting up of a multi-purpose plant with an outlay of Rs 195 crore. The Navin Fluorine stock traded at Rs 2,555 apiece, up 2.3 per cent from its previous close, while the benchmark Sensex was up 0.3 per cent at 46807.61.

The CAPEX will be undertaken by its wholly-owned subsidiary, Navin Fluorine Advanced Science, at Dahej, Gujarat, and will be funded through a mix of internal accruals and debt. The new capacity is expected to come onstream during the first half of FY23 and will create opportunities for new products in life and crop sciences, in the specialty chemicals business, according to a filing to stock exchanges after market hours on Wednesday.

Commenting on the development, Radhesh Welling, managing director, Navin Fluorine International, said, “This investment will lay the foundation for the next phase of growth of our Specialty Chemical business. It will help us enhance our product offerings and strengthen our customer relationships along with providing building blocks for future growth.”

In February, Navin Fluorine had entered a $410 million (about Rs 2,900 crore) multi-year contract with a global company to manufacture and supply high-performance product in the fluorochemicals space at an investment of about $51.5 million ( Rs 365.50 crore) in the manufacturing facility and $10 million ( Rs 71 crore) in a captive power plant.

Navin Fluorine reported a 45 per cent year-on-year rise in its net profit to Rs 67.33 crore for the quarter ended September. Net sales rose 16.6 per cent to Rs 307.70 crore.