Shares of Coromandel International will be in focus on March 13 after the fertiliser company announced its plan to acquire a 53 percent stake in NACL Industries Ltd for Rs 820 crore. The transaction, priced at Rs 76.7 per share, involves purchasing shares from the current promoter, KLR Products Limited.
NACL Industries is a well-established company in the crop protection sector, with a strong presence in branded formulations in India, exports of technical products to global markets, and contract manufacturing for multinational agrochemical firms. With this acquisition, Coromandel aims to strengthen its position in the Indian crop protection industry, expand its product portfolio, and enhance its operational capabilities.
Under SEBI Takeover Regulations, Coromandel would also launch an open offer for the acquisition of up to 26% equity in NACL from public shareholders. The deal is subject to regulatory approvals and is expected to be closed in the next few months.
The acquisition is consistent with Coromandel’s diversification and expansion plan in the agrochemical business. With the technical expertise and production capacities of NACL, Coromandel wants to deepen market penetration, enhance product innovation, and broaden the product base. The transaction is likely to propel the commercialisation of new products and enable the company to enter the contract manufacturing segment.
NACL Industries possesses formulation and technical plants in Andhra Pradesh, in addition to having an R&D facility in the Hyderabad area. Its subsidiary also recently made an investment in a Dahej-based facility that manufactures technical grade products. These assets shall complement existing infrastructure in Coromandel and support its supply chain.
The company aims to enhance its technical strength, expand customer base, and become a market leader in India’s agrochemical market by acquiring a majority stake in NACL.
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Source: Moneycontrol.
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