AVI Polymers Stock Soars Over 10% Ahead of Finance Minister's Budget Announcement
The shares of AVI Polymers, a prominent small-cap specialty chemicals company, witnessed a significant surge of more than 10% in early trading on Friday. This notable upward movement occurred just hours before Finance Minister Nirmala Sitharaman was scheduled to present the Union Budget for the fiscal year 2026-27.
Impressive Third Quarter Financial Performance
The company's stock price was locked at the 5% upper circuit on the Bombay Stock Exchange (BSE), reaching ₹17.12 per share. This rally follows the release of AVI Polymers' robust financial results for the third quarter of the fiscal year 2025-26.
According to the quarterly report, AVI Polymers achieved a net profit of ₹7.02 crore in Q3 FY26. This represents a remarkable increase of 206% compared to the net profit of ₹2.29 crore recorded in the previous quarter. The company's revenue from operations also demonstrated exceptional growth, jumping 348% to ₹132.32 crore from ₹29.50 crore on a quarter-on-quarter basis.
Strong Nine-Month Financial Results
For the cumulative nine-month period of FY25-26, AVI Polymers has reported a net profit of ₹10.09 crore and revenue from operations totaling ₹161.82 crore. These figures underscore the company's consistent financial performance and operational efficiency throughout the fiscal year.
BSE Approval for ₹90 Crore Rights Issue
In a significant development, AVI Polymers has recently secured in-principle approval from the Bombay Stock Exchange for its proposed ₹90 crore rights issue. The rights issue, which was issued on January 06, 2026, has received the green light from the exchange authorities.
This approval enables the company to move forward with its fundraising initiative while adhering to specific compliance requirements. These include proper record date notifications and comprehensive price disclosures to ensure transparency and regulatory adherence.
Management Commentary on Growth Trajectory
Chintan Patel, Managing Director of AVI Polymers, expressed optimism about the company's performance and future prospects. He stated, "The sharp growth in revenue and profitability highlights the scalability of our trading platform and the increasing confidence of our customers. The in-principle approval for the ₹90 crore Rights Issue represents a critical milestone that will provide essential growth capital to expand our volumes, strengthen working capital, and pursue strategic opportunities."
Details of the Rights Issue and Capital Restructuring
The Board of Directors of AVI Polymers has approved raising funds up to ₹90 crore through a rights issue of equity shares, with each share having a face value of ₹10.00. The company plans to issue equity shares to eligible shareholders, with an authorized Allotment Committee responsible for finalizing the detailed terms and conditions.
Additional specifics regarding the rights issue will be announced in an upcoming board meeting. This will include comprehensive details such as:
- The total number of equity shares to be offered through the issue
- The issue price per equity share
- The right entitlement ratio for existing shareholders
- Terms of payment for subscribers
- The record date for determining eligibility
- The precise timing of the Rights Issue
In a related development, shareholders of AVI Polymers approved a significant capital restructuring during an Extra Ordinary General Meeting held on December 11, 2025. The approved resolution increases the company's authorized share capital from ₹6.5 crore to ₹100 crore. This restructuring expands the number of equity shares from 65 lakh to 10 crore while maintaining the face value of ₹10 per share.
Market Performance and Investor Sentiment
At 10:45 AM, AVI Polymers share price remained locked at the 5% upper circuit on the BSE, reflecting strong investor confidence and positive market sentiment. The company's stock performance, combined with its impressive financial results and strategic initiatives, has positioned it as a noteworthy player in the small-cap segment of the Indian stock market.
The timing of this surge, occurring just before the Union Budget announcement, suggests that investors are anticipating favorable policies or sector-specific benefits that could further boost the company's growth prospects in the coming fiscal year.
