Navin Fluorine International Ltd’s Board Approved An Investment of ₹250 Crore in NFASL

Refrigeration gas maker Navin Fluorine International Ltd, in an exchange filing on March 14, 2024, stated that the company’s Board of Directors had approved an additional investment of ~₹250 crore in its wholly-owned subsidiary, Navin Fluorine Advanced Sciences Limited (NFASL). This investment will be made by subscribing to non-cumulative, non-convertible, non-participating, and redeemable preference shares in the company.

A significant part of the funds will be used to repay the existing inter-corporate deposits and further NFASL business funding requirements. This transaction is likely to be completed by May 2024. Given that NFASL is a wholly-owned subsidiary, the transaction is categorised as a related party transaction even if it has been set up at arm’s length.

On March 15, 2024, the share price of Navin Fluorine International Ltd opened at ₹3,000.50 and touched the day high of ₹3,004.00 at 10:35 AM.

Recently, Navin Fluorine International Ltd announced the appointment of Mr Sandeep Mandot as Vice President – Corporate Head – HSE & Sustainability, which became effective on March 01, 2024. Mr Sandeep Mandot has replaced Mr Deepak Naik, whose resignation became effective on January 15, 2024.

In February 2024, the Board of Navin Fluorine International Ltd gave a green flag for the total Capital Expenditure (CAPEX) of ₹372 crore. Out of which ₹288 crores will be spent in two or more phases on the new cGMP-4 facility at Dewas unit and the remaining ₹84 crores for expansion of HFC capacity at Surat unit of the company.

About Navin Fluorine Advanced Sciences Limited (NFASL)

NFASL was incorporated in February 2020 by NFIL for greenfield projects in fluorochemicals. Despite its relatively recent inception, NFASL has already commenced commercial operations, achieving a turnover of approximately ₹514 crore as of March 31, 2023.

About Navin Fluorine International Ltd

Navin Fluorine International Ltd (NFIL) is a part of the Padmanabh Mafatlal group. The company has had a rich presence in the fluorochemical industry since 1967. Navin Fluorine International Ltd is mainly involved in the production of refrigeration gases, inorganic fluorides, and speciality organofluorines. In addition, NFIL also offers contract research and manufacturing services. The company’s portfolio includes more than 50 fluorinated compounds developed over the years.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.