Coromandel shares rise 2% as company acquires 53% stake in NACL for ₹820 crore; check other key details

Besides, the company said it would launch an open offer to buy an additional up to 26% of equity.

In a regulatory filing on Wednesday, Coromandel International said the board has "approved the acquisition of 10,68,96,146 equity shares of the NACL Industries, representing 53.13% of the paid-up equity share capital..."

A share purchase agreement has been signed amongst Coromandel International, NACL Industries Ltd., the seller (i.e., KLR Products Ltd.), K. Lakshmi Raju (being a promoter), and Bright Town Investment Advisor Pvt. Ltd. (being a member of the promoter/promoter group of the target).

"Coromandel is set to acquire a 53% shareholding in NACL Industries for a consideration of ₹820 crore at ₹76.7 per share from the current promoter KLR Products Ltd," the company said.

It also proposes to make an open offer to the public to acquire up to 26% of the equity share capital of the company as per the SEBI Takeover Regulations.

The proposed transaction, likely to be completed over the next few months, will position Coromandel as one of the leading players in the Indian crop protection industry with a wide range of technicals and pan-India presence in the domestic formulation business, the company said.

This will also help in expanding Coromandel's scale, accelerating its entry into the contract manufacturing business, fast-tracking new product commercialisation, and expanding its product portfolio.

NACL Industries operates technical and formulation plants in Andhra Pradesh, besides having a centralised R&D facility near Hyderabad.

NACL's subsidiary has also recently invested in a technical-grade facility at Dahej, capable of manufacturing active ingredients. It has established formidable partnerships with key global players, offering contract manufacturing services for over two decades.

Coromandel International share price trend

Shares of the company have rallied over 63% in the past 12 months.