AVI Polymers' stock surged 4.98% to ₹24.25 on the BSE at 12:49 p.m. IST on May 7, following the board's approval of the 90% stake acquisition in JVTR Consultants Private Limited. The stock has extended its winning streak to 16 consecutive sessions following the acquisition announcement. According to HDFC Securities, the shares traded near their upper range as investors reacted positively to the proposed strategic restructuring and technology sector expansion. The stock has rebounded 64% from their early April low of ₹10.61, demonstrating strong investor confidence in the company's diversification strategy. The stock reached a new all-time high of ₹29.41 per share in March, marking significant recovery from earlier volatility.
AVI Polymers Limited announced that its board has approved the acquisition of a 90% stake in JVTR Consultants Private Limited through a share swap arrangement on a preferential issue basis at an indicative valuation of ₹500 crore. As per the company's exchange filing submitted to BSE under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, this strategic move represents a significant expansion into the technology and digital services sector for the polymer manufacturer. The proposed transaction carries an indicative valuation of ₹500 crore, with equity shares to be issued through a preferential allotment structure as part of the share swap mechanism. The company clarified that the transaction remains subject to due diligence, execution of definitive agreements, shareholder approval and necessary regulatory clearances.
As reported by AVI Polymers, the company plans to focus on information technology services, software development, system integration, digital platforms and allied technology services and activities following the acquisition. The company has also approved changes to its Memorandum of Association (MOA) to expand the company's business objects in line with its planned transition into technology-related businesses. Managing Director Chintan Yashwantbhai Patel emphasized the strong opportunities in technology-driven businesses, stating that this strategic expansion will help build a more diversified and future-ready business portfolio. According to HDFC Securities, the business object expansion aligns with the company's broader acquisition strategy and reflects its planned diversification into digital and technology-led operations, coming amid a broader trend of listed companies exploring diversification into technology and software-related businesses.
For the March quarter (Q4FY26), AVI Polymers reported revenue of ₹312 crore, marking a 13.6% quarter-on-quarter jump from ₹132.32 crore in Q3FY26. The company's net profit rose to ₹20.3 crore from ₹7.01 crore in Q3FY26, indicating growth of 46.1%. As reported by Live Mint, the stock had previously surged 176% in February, marking its biggest monthly gain since November 2025, when it had advanced 148%. The company's recovery from the sharp volatility witnessed in early April demonstrates strong underlying business fundamentals supporting the diversification strategy. The company has delivered good profit growth of 127% CAGR over the last 5 years and maintains a return on equity (ROE) track record of 29.8% over the last 3 years.
