The Deepak Nitrite share price gained 10 percent intraday on May 24 as the company plans to invest around Rs 5,000 crore in Gujarat projects.

Deepak Nitrite's wholly owned subsidiary Deepak Chem Tech Limited on May 24 signed a contract with the Gujarat government to invest around Rs 5,000 crore in the next four years for setting up various projects, the company said in its release.

The company aims to manufacture specialty chemicals, phenol/acetone and bisphenol at Dahej and Nandesari in Gujarat.

The pharmaceutical and agrochemical industries rely on speciality chemicals to meet their needs. Acetone and phenol are utilised in a variety of end-user industries, including laminates, plywood, pharmaceuticals, paint, and adhesives.

The proposed investment is expected to generate around 1,500 direct and indirect employment opportunities, the company said. It will also help cut down on India's import bill, it said.

For the quarter ended March 2023, the company posted a consolidated net profit of Rs 233.86 crore as against Rs 467.21 crore a year back.

At 12:07am, Deepak Nitrite was quoting at Rs 2,125.00, up Rs 175.30, or 8.99 percent on the BSE.

The share touched a 52-week high of Rs 2,355.55 and a 52-week low of Rs 1,682.15 on November 3, 2022 and July 1, 2022, respectively. It traded 9.79 percent below its 52-week high and 26.33 percent above its 52-week low on May 24.