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Shares of Rain Industries 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 Rain Industries traded at Rs 188 per share, down 7 per cent on the BSE. In comparison, the S&P BSE Sensex 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.
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