On 2 December 2023, the company’s board approved a rights issue, subject to necessary approvals from regulatory authorities. The rights issue shares will be offered at Rs 121 per share (a premium of Rs 120), and the company will look to raise up to a total of Rs 49.95 crore.
The company said that the funds of the rights issue will be used for acquisition of a 126-acre land plot. This land will be strategically employed for the establishment of both a solar power facility and a wind energy installation. These sustainable energy sources will be harnessed to generate electricity, which, in turn, will be utilised for the production of green hydrogen via water electrolysis.
This green energy expansion offers the company strategic advantage of backward integration, with control over its energy supply. Further, any surplus green hydrogen produced will be made available for sale to external parties, added the firm.
Abhishek Javeri, MD, Sadhana Nitro Chem, said, “This facility, boasting a capacity of 15MW-20 MW, marks a significant milestone in our journey towards sustainability and innovation within the realm of intermediate specialty chemicals manufacturing.
Green hydrogen facility is expected to yield substantial cost savings, significantly increasing our bottom line. Beyond financial gains, this expansion offers us a strategic advantage through backward integration, granting us greater control over our supply chain.”
Sadhana Nitro Chem is engaged in manufacturing of chemical intermediates, heavy organic chemicals and performance chemicals.
The company reported consolidated net profit of Rs 2.57 crore in Q2 FY24 as against a net loss of Rs 0.37 crore recorded in Q2 FY23. Net sales jumped 15% year on year to Rs 42.01 crore in the quarter ended 30 September 2023.