Shares of Sealmatic India Ltd. surged over 9% to hit a record high on Wednesday after it won an order to supply mechanical seals to Indian Oil Corp.
The company received an order to supply 60 API mechanical seals along with 60 API plans. The order entails the supply of high-critical mechanical seals for 52 pumps in the FCCU, VBU, and BBU units at Indian Oil Corp.'s Mathura refinery. This installation will create a profitable recurring spare parts business for the company through the lifetime of the equipment, according to an exchange filing.
Sealmatic offers a portfolio of seals and seal supply systems in accordance with API 682, fourth edition. API 682 is a standard of the American Petroleum Institute.
Shares of the company rose as much as 9.17% before paring gains to trade 7.66% higher at 10:23 a.m., compared to a 0.64% advance in the Nifty 50.
The total traded quantity so far in the day stood at 2.9 times the 30-day average volume. The stock's relative strength index stands at 83, indicating that it may be overbought.
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