Kothari Fermentation & Biochem hits 20% upper circuit as Ashish Chugh acquires stake

Shares of  Kothari Fermentation & Biochem jumped 20 percent to 88.20 and hit upper circuit on BSE on October 3 after ace investor Ashish Chugh picked 1 lakh shares, or 0.67 percent shareholding, in the company.

Chugh acquired 1 lakh shares in Kothari Fermentation & Biochem through open market transactions at an average price of Rs 67.03 a share. Chugh is known for picking hidden stock gems in the micro-cap segment.

Kothari Fermentation and Biochem is a manufacturer of yeast and its derivatives. It has its plant in Sikandrabad, Uttar Pradesh, with has installed capacity of 2,000 tonne a month.

In July, NextFerm Technologies Ltd, an Israel-based food-tech company that is developing ProteVin™, a vegan, fermentation-based, non-GMO protein alternative, along with other innovative yeast-based nutrients, announced a commercial manufacturing agreement with Kothari Fermentation for the production of ProteVin. The agreement exclusively covers production services and does not involve the transfer of intellectual property to the subcontractor.

In their partnership, Nextferm will invest $2 million for the production setup in India, which will be ready for production later this year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.