Budget 2024: Waterbase, Zeal Aqua, Avanti Feeds, Apex Frozen, others rise up to 14% after FM announces 5 new aquaparks

Aqua, fisheries, and shrimp-feed stocks rallied up to 14 percent in intra-day deals on Thursday, February 1, 2024, after Finance Minister Nirmala Sitharaman in the interim budget announced that five integrated aquaparks will be set up.

Waterbase share price jumped as much as 13.8 percent to ₹95 on this announcement.

The Waterbase Ltd. is a leading manufacturer of high-quality shrimp feed in India. The company also processes shrimp in IQF, Block Frozen, and Cooked form from its own captive farms, and exports its produce to global markets, predominantly Japan, Europe, and the United States.

Read here: Budget 2024 Key Highlights: From income tax to green energy and tourism

Meanwhile, Zeal Aqua surged the most 9.95 percent to ₹12.38. Zeal Aqua Limited, an aquaculture company, engages in the farming, developing, and harvesting of prawns in India. The company also trades in shrimp seeds, feeds, and medicines.

Also, shares of Avanti Feeds gained 9.4 percent to ₹570.10 apiece, Apex Frozen Foods advanced 7.5 percent to ₹272.90 and BKV Industries hit its 5 percent upper circuit at ₹12.29.

"It was our government that set up a separate department for fisheries, realising the importance of assisting fishermen. This has resulted in a doubling of both inland and aquaculture production. Seafood exports since 2013-14 have also doubled. Implementation of Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be stepped up to:

(1) enhance aquaculture productivity from existing 3 to 5 tons per hectare,

(2) double exports to ₹1 lakh crore and

(3) generate 55 lakh employment opportunities in the near future. 

Also, five integrated aquaparks will be setup," said Finance Minister Nirmala Sitharaman in her budget speech.

Read here: Budget 2024: Read full text of FM Sitharaman speech here

"Very Interestingly, we just saw a focus on the aquaculture industry, a sector that has great untapped potential. The PM Matsya Sampada Yojana has revised to increase productivity by 2 tonnes per hectare, a goal of further doubling down exports here on. 55 lakh new employment opportunities are said to be generated as 5 new aqua parks are being set up. We are keen on this as we just saw the share prices of one of our portfolio companies that works in the seafood industry go up by 6 percent in a fraction of a second. The PM Matsya Sampada Yojana can be game-changing for the industry," said Divam Sharma, smallcase Manager & CEO and Co-Founder Green Portfolio.

In 2022, the government unveiled plans for the establishment of the inaugural integrated aquapark in Tarin, Arunachal Pradesh. A dedicated fund of ₹43.59 crore was allocated for the aquapark, aimed at fostering fishing activities and providing a comprehensive platform for fish farmers and stakeholders in the region. This highlights the government's commitment to boosting the fisheries sector by creating modern and integrated facilities to support the aquaculture industry and enhance opportunities for those involved in fish farming and related activities.

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The Matsya Sampada Yojna is geared towards catalysing a Blue Revolution by fostering sustainable and responsible growth within the fisheries sector. With a substantial estimated investment of ₹20,050 crores, the scheme is dedicated to the comprehensive development of the fisheries sector. Launched for five years from FY21 to FY25, across all states and union territories, PMMSY aims to bridge critical gaps in the fisheries value chain, from production and productivity to post-harvest infrastructure and marketing.

This initiative underscores the government's commitment to advancing the fisheries industry, promoting environmentally conscious practices, and ensuring the long-term prosperity of the sector.

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