Mumbai: Chemical trading and logistics company A-1 Limited (BSE: 542012) has secured a major order for the supply of industrial urea (automobile grade) worth ₹127.5 crore from Sai Baba Polymer Technologies. Following this announcement, the company’s shares surged and soon hit the upper circuit limit.
Share Price Soars
A-1 Limited, formerly known as A-1 Acid Limited, closed at ₹2,433.10 yesterday. Today, the stock opened at ₹2,454.70, marking a gain of ₹121.60, and quickly surged to ₹2,554.75, reaching the upper circuit limit of 5%.
Order Details
According to a regulatory filing with BSE, the order is for the supply of 25,000 tons of industrial urea across the company’s manufacturing centers in India. The total order value, including GST, is ₹150.45 crore, and deliveries will be made as per the customer’s requirements. This large order is expected to significantly boost the company’s operating revenue.
Recent Developments
A-1 Limited has been in the limelight recently for several corporate actions, including bonus issues, stock splits, and investment approvals. In a meeting held on 14 November, the board approved a 3:1 bonus issue, a 10:1 stock split, and other proposals through remote e-voting and postal ballots.
Understanding Upper Circuit
In the stock market, the upper circuit is the maximum price a share can rise during a trading session, set by stock exchanges to prevent excessive volatility and manipulation. Once this limit is reached, trading is temporarily halted. For A-1 Limited, this limit is currently 5%.
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