Rain Industries tumbles 8% after arm closes European unit amid energy woes


Shares of tumbled over 8 per cent to Rs 184 per share in Friday’s intra-day trade after the company’s wholly-owned subsidiary – Rain Carbon – announced temporary closure of its European unit.

At 11:50 AM, shares of traded at Rs 188 per share, down 7 per cent on the BSE. In comparison, the S&P BSE was up 0.3 per cent at 59,907 levels. The stock hit a 52-week high of Rs 259 apiece on 5 October, 2021, and a 52-week low of Rs 128 apiece on 20 June, 2022.

After Rain Industries’ arm closed its operating unit in Europe, the company plans to develop other energy-related plans for other European production units to overcome any potential natural gas shortages and price spikes amid the uncertain geopolitical environment.

“Given the severe natural gas situation in Europe — the expected decrease in consumer demand during the cold winter months for certain products and the risk of continued increases in gas prices – we have conducted a thorough analysis of the energy-intensity of each production unit at our European plants and are closely evaluating whether it makes economic sense to temporarily reduce or shut down additional production lines in the event the situation worsens,” said Gerry Sweeney, President, Rain Carbon. READ HERE

Moreover, given the ongoing energy woes amid geopolitical tensions, the company is closely tracking its suppliers and customers, in order to maintain long-term viability of operations. The management expects these measures to be temporary in nature and plans to return to full operations once the situation improves.

Rain Carbon, a wholly-owned subsidiary unit of Rain Industries, is a leading producer of carbon-based products and advanced materials. The carbon business segment converts byproducts of oil refining and steel production into high-value, carbon-based products critical for global industries.

Advanced materials business segment, on the other hand, extends the value chain of carbon processing through downstream transformation of carbon output and other raw materials.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor


Source link

Comments are closed.