Thermax shares in focus today as company inks tech licensing pact with South Korean firm

Shares of Thermax Limited are in focus today after the firm said it has inked a licence and technical assistance agreement with South Korea's Flowtech Co Ltd., to buy the technology required for the manufacturing of Poly Carboxylate Ether (PCE) products.

Thermax stock ended 0.72% higher at Rs 3,510.50 in the previous session. Market cap of the firm stood at Rs 41,829 crore.

In terms of technicals, the relative strength index (RSI) of the stock stands at 70.4, signaling it's trading in the overbought zone. The stock is trading higher than the 20 day, 50 day 100 day, 150 day and 200 day moving averages.

The Indian multinational engineering conglomerate said the consideration for this technology agreement involves a payment of $300,000, wherein 50 percent will be adjusted against royalty payments, and the remaining amount will serve as a refundable deposit throughout the agreement period. The deal is expected to boost Thermax's construction chemicals business.

On details of the agreement, Thermax said that this was not an acquisition and did not fall under related party transactions. The promoter, promoter group, or group companies do not have any vested interest in the entity named Flowtech Co Ltd.

Thermax Limited offers integrated solutions in heating, cooling, power generation, water treatment and recycling, air pollution control, and chemicals. It operates in four segments: Industrial Products, Industrial Infra, Green Solutions, and Chemical.

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