Shares of Tanfac Industries Ltd surged sharply in trade on April 15, rising nearly 10% intraday after the company announced a significant long-term business development.
The rally comes after Tanfac informed exchanges that it has entered into a Memorandum of Understanding (MoU) with a large multinational company for the supply of 5,000 metric tonnes per annum of a key fluorinated product.
The agreement, which spans a period of five years starting January 2027, is estimated to be valued at approximately ₹1,250 crore (excluding GST), providing strong revenue visibility over the medium term. The contract includes both export and domestic supply components, indicating diversification in demand channels.
Investors reacted positively to the development, as the order size is substantial relative to the company’s scale and is expected to support growth momentum going forward. The long-term nature of the agreement also improves earnings predictability, a key trigger for re-rating in specialty chemical companies.
Tanfac Industries is a specialty chemicals manufacturer and a joint sector company promoted by TIDCO and Anupam Rasayan. The company primarily produces fluorine-based chemicals, which are used across industries such as agrochemicals, pharmaceuticals, refrigerants, and specialty applications.
The fluorinated chemicals segment has seen increasing demand globally due to its critical role in high-performance materials and advanced chemical processes. With this new MoU, Tanfac is likely to strengthen its positioning in the segment and deepen its relationship with multinational clients.
The stock was trading sharply higher following the announcement, reflecting optimism around future earnings visibility and order book strength.
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