Shares of BASF India Ltd. are up 9% on Friday, December 20, having snapped a four-day losing streak, during which shares had declined 4%.

BASF shares had ended 2% lower on Thursday, extending its losses for the fourth day in a row.

Before today’s rebound, shares of BASF had corrected 38% from their record high of ₹8,750, which the stock had hit on October this year.

The sharp rise in the stock price was seen after the company announced the demerger of its agricultural solutions business into a separate legal entity.
The demerger will enable operational flexibility, leverage differentiated steering and create value.

“The company’s agricultural solutions business has generated sales of ₹2,006 crore, representing 14.57% of the total revenues of the company for the financial year ended March 31, 2024,” the company said in an exchange filing.

BASF has also formed a committee of independent directors to explore and examine the various details of the demerger.

On September 26, the company had informed the stock exchanges that BASF SE will globally complete the legal and Enterprise Resource Planning separation of the agricultural solution business by 2027. As a next step, BASF SE, Germany is also targeting readiness for a potential initial public offering of its global agricultural solutions business and is also evaluating the option of listing of a minority share in the mid-term.

On the charts, BASF’s Relative Strength Index (RSI) had declined to levels of 29.5 on Friday, which indicates that the stock is ‘oversold’. An RSI reading below 30 indicates that the stock is in ‘oversold’ territory.

BASF shares are currently trading 6.93% higher at ₹5,839. The stock has rallied 90% so far in 2024.