Post fire incident, Deepak Nitrite dips 5% amidst buzz of plant closure notice

Post Fire Incident, Deepak Nitrite Dips 5% Amidst Buzz Of Plant Closure Notice

The stock price of Deepak Nitrite has declined 16 per cent, in the past one week, after the company’s manufacturing facility in the Nandesari GIDC area in Vadodara was caught with a massive fire.

On Thursday’s intra-day trade, shares of Deepak Nitrite were down by 5 per cent at Rs 1,715.80 on the BSE. It was falling as much as 9 per cent in the last two days amidst the buzz of plant closure notice.

The Gujarat government seemed to have issued closure notice to the chemical intermediate maker over the recent Nandesari explosions, as reported by some media reports.

The stock of specialty chemicals has traded close to its 52-week low of Rs 1,712.50 that was touched on June 21, 2021. Also, the stock has corrected 43 per cent from its 52-week high of Rs 3,020 that was touched on October 19, 2021.

As per the Exchange communication, On Wednesday, June 8, 2002, it has sought a clarification from Deepak Nitrite with reference to the media report in Financial Express. The response from the company it still awaited.

The newspaper has reported that as per the notice that was issued by the office of Director of Industrial Safety and Health (DISH), which functions under the Gujarat government’s Labour and Employment department, it is said that Deepak Nitrite will not be permitted to start production activities till it follows compliances that is related to plant and building safety.

But, on Wednesday, the company has informed the exchanges that the fire has caused damage to warehouse, offices, some utilities, and also part of manufacturing facility of Sodium Nitrite that have been facing the warehouse.

All the other manufacturing facilities that included other two streams of Sodium Nitrite were also unaffected and in safe conditions. The stability studies and other assessments were also simultaneously being conducted to reassure safe operations.

The company has further said that it is in the process of submitting necessary applications, documents as sought by various authorities so as to obtain necessary permissions to restart the Plant, at the earliest.

However, in past one week, the stock price of Deepak Nitrite has been declined 16 per cent after the company’s manufacturing facility in the Nandesari GIDC area in Vadodara had caught a massive fire, which was followed by five chemical blasts on June 2, 2022.

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