Why has the Chemcon stock rallied so sharply in the last few days and what is big story that is supporting the stock?

Recently listed stock, Chemcon Speciality Chemicals, has been on a roll of late surging 29% in the past three days. The big trigger came for the stock after Plutus Wealth Management acquired 1 million shares of the company in the open market. The stock had a phenomenal oversubscription in its IPO and also had a phenomenal listing post the IPO.

Plutus Wealth Management LLP purchased 1 million equity shares of Chemcon Specialty Chemicals representing 2.7% of the equity for a consideration of Rs.43 crore. The deal was struck on the NSE and the average price of purchase was at Rs.428.52 per share. It could not be ascertained immediately who was the seller in the counter.

Chemcon Speciality Chemicals is engaged in the business of manufacture and marketing of speciality chemicals to niche businesses. The stock had corrected sharply after a robust debut on the bourses. The stock had scaled a peak price of Rs. 731, but had later gone on to hit a low of Rs.398. Chemcon has recently expanded its P2 & P7 plants

Chemcon is a leading manufacturer of pharmaceutical chemicals as also a key manufacturer in India of oil-well completion chemicals. The company also manufactures specialised chemicals, such as hexa-methyl-disilazane and chloro-methyl-isopropyl-carbonate. These are predominantly used in the pharmaceuticals industry.

In addition, Chemcon also manufactures inorganic bromides like Calcium Bromide, Zinc Bromide and Sodium Bromide. These chemicals are extensively used as completion fluids in the oilfields industry.