Asian Paints has surged 0.7 percent after the news of the agreement with its subsidiary Gujarat Chemical Port Limited (GCPL). On March 7, 2024, Asian Paints signed the agreement and announced the ethylene storage setup and handling facility in Dahej. The stock has witnessed a good rise in price. The share price was recorded at ₹2,846.85 on the NSE.
Through this agreement with CGPL, Asian Paints (Polymer) (APPPL) will set up ethylene storage and will create more opportunities for the company.
As per the details, APPPL has announced a security deposit of ₹460 crore to GCPL. This deposit will be refunded to APPPL in the next 17 to 18 years. Also, there will be an addition of setting up VAM and VAE (vinyl acetate ethylene emulsion and vinyl acetate monomer) manufacturing facility of Rs 2,100 crore.
This project might seek the attention of retail investors in the upcoming days. Also, the annual results for FY24 are going to be announced soon. In the recent q3 results of FY24, Asian Paints has marked ₹1,475.16 consolidated net profit. The revenue of the company has surged by 5.4 per cent.