Coromandel International Limited, a subsidiary of the Murugappa group that offers agricultural solutions, has recently acquired a majority stake in the Hyderabad-based NACL Industries. As a result of this acquisition, Coromandel has announced an open offer to purchase up to 5.24 crore fully paid-up equity shares from the public shareholders of NACL Industries. This offer represents 26% of the voting share capital of the target company, with a proposed price of Rs 76.70 per share, totaling up to Rs 402 crore.
The acquisition of 53% of NACL Industries for Rs 820 crore at Rs 76.70 per share from the current promoter, KLR Products Limited, will enhance Coromandel’s position as a key player in the Indian crop protection industry. This strategic move will allow Coromandel to expand its product portfolio and accelerate its entry into the contract manufacturing business.
Following the acquisition news, NACL Industries’ shares surged by 10% to Rs 87.74, while Coromandel International’s shares experienced a slight increase, trading at Rs 1,796.85. The board of directors of NACL Industries appointed G V Bhadram as an additional director and whole-time director, designating him as a Key Managerial Personnel (KMP) for a period of two years. Additionally, NACL’s Managing Director and CEO, M Pavan Kumar, resigned to facilitate the transition of executive leadership but will continue to support the company as an advisor for the next two years.
The positive response to the acquisition was evident in the 16% rise in NACL Industries’ shares on the Bombay Stock Exchange, closing at Rs 92.33. This marked a significant improvement for NACL Industries, which had hit a 52-week low on November 26, 2024. As the deal progresses, both companies are poised for growth and success in the agri-solutions industry.
