Nirman Agri Genetic shares hit upper circuit after signing MoU with Toshan Seeds

Shares of Nirman Agri Genetics hit an upper circuit during the weak trading session on Thursday after the company signed a memorandum of understanding to increase its portfolio in different products to increase its topline. The company informed about the new partnership, through an exchange filing.

Nirman Agri Genetics has entered into a memorandum of understanding (MoU) with Toshan seeds, the company said in the filing. "This partnership will help us to boost the company's portfolio in different  products and varieties which will  help us in expansion of new markets. The company conservatively estimates a minimum addition of Rs 30 crore to the topline," it added.

Size of the agreement will depend upon the requirement of the seeds and pesticide from time to time. It aims to sell and purchase seeds and pesticide and boost the company's portfolio in different products and varieties, it added further.
 
Following the announcement, shares of Nirman Agri Genetic hit an upper circuit of Rs 183.75 on Thursday. However, the stock has surged more than 275 per cent from its 52-week lows hit in the last six months. Its price-to-earnings ratio stood at 27.34 times and price-to-book ratio was at 3.82 times.

Nirman Agri Genetics was listed at the bourses in March this year. The company sold its shares at an issue price of Rs 99 to raise Rs 20.30 crore via primary offering. The stock has about doubled since then. The company was listed on the SME platform of the National Stock Exchange (NSE).

Nirman Agri Genetics will host its annual general meeting (AMG) of the members of the company on Saturday, September 30, 2023 at 12 noon.

Nirman Agri Genetics, incorporated in 2020, is engaged in the business of production, processing, and marketing of high-quality hybrid seeds, pesticides, and bio-organics, which are used for different crops like corn, sunflower, cotton, paddy, grain sorghum, among others.

Also Read: Nippon India Large Cap Fund vs HDFC Top 100 Fund: Mutual funds' AUM, returns, NAV, and more

Also watch: M&M, SBI, ICICI Bank top losers on Nifty50 amid market selloff; HDFC Bank, Reliance Industries most active stocks on September 21, 2023

Also read: Hot stocks on September 21, 2023: Apollo Tyres, SJVN, KPIT Tech, EKI Energy and more    

Also read: Reliance Industries, TCS, HDFC Bank: Trading strategies for 3 most-valued stocks