Deepak Nitrite dips 5% amid buzz of plant closure notice post fire incident

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

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

According to some media reports, the Gujarat government seemed to haved issued closure notice to the chemical intermediate maker over the recent Nandesari explosions.

The stock of specialty chemicals traded close to its 52-week low of Rs 1,712.50 touched on June 21, 2021. The stock has corrected 43 per cent from its 52-week high of Rs 3,020 touched on October 19, 2021. At 09:30 AM, the stock was down 2 per cent at Rs 1,768.30, as compared to 0.27 per cent decline in the S&P BSE Sensex.

The BSE on Wednesday, June 8, 2002 as per the Exchange communication it sought a clarification from Deepak Nitrite with reference to the media report in Financial Express. The response from the company was awaited.

As per the notice issued by the office of Director of Industrial Safety & Health (DISH), functioning under the Gujarat government’s Labour & Employment department, Deepak Nitrite will not be permitted to start production activities till it follows compliances related to plant and building safety, the newspaper reported.

However, on Wednesday, the company informed the exchanges that the fire caused damage to warehouse / offices/ some utilities and part of manufacturing facility of Sodium Nitrite that were facing the warehouse. All the other manufacturing facilities including other two streams of Sodium Nitrite were unaffected and in safe conditions. Stability studies and other assessments were simultaneously being conducted to reassure safe operations.

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

Meanwhile, in past one week, the stock price of Deepak Nitrite has declined 16 per cent after the company's manufacturing facility in the Nandesari GIDC area in Vadodara caught a massive fire following five chemical blasts on June 2, 2022. In comparison, the S&P BSE Sensex was down 2 per cent during the same period