Shares of Shaily Engineering Plastics Limited rallied 4% after the company informed exchanges about signing a significant long-term contract with a large domestic pharmaceutical company.
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the filing, the agreement pertains to the manufacturing and commercial supply of pen injectors over a period of four years.
The contract size is approximately ₹423 crores, making it a sizeable order for the company. However, the name of the customer has not been disclosed due to confidentiality reasons.
Shaily Engineering Plastics confirmed that the order has been awarded by a domestic entity and that the agreement is a manufacturing and commercial supply arrangement. The supplies under the contract are scheduled to be executed over four years, providing medium-term revenue visibility.
The company also clarified that the promoter, promoter group, or group companies do not have any interest in the entity awarding the contract. It further stated that the transaction does not fall under related party transactions.
Following the announcement, investor sentiment turned positive, leading to a rise in the stock price during the trading session.