Shares of Coromandel International Ltd surged 2.30% on Wednesday, March 13, following the company’s announcement of acquiring a 53% stake in NACL Industries Ltd for ₹820 crore at a price of ₹76.7 per share. The acquisition will be made from the current promoter, KLR Products Limited.
NACL Industries is a well-established crop protection company with a strong branded formulation business in India, global exports of technicals, and contract manufacturing operations with multinational agrochemical firms.
As per SEBI Takeover Regulations, Coromandel will also make an open offer to acquire up to 26% of NACL’s equity share capital from public shareholders. The transaction is currently subject to regulatory approvals and is expected to be completed over the next few months.
The acquisition is set to bolster Coromandel’s position as a leading player in the Indian crop protection industry, expanding its scale and market reach. The move will also accelerate the company’s entry into the contract manufacturing business, fast-track new product commercialization, and broaden its product portfolio.
NACL Industries operates technical and formulation plants in Andhra Pradesh and has a centralized R&D facility near Hyderabad. The company has also invested in a technical-grade facility at Dahej, which is capable of manufacturing active ingredients.
Coromandel’s move will strengthen its existing partnerships with key global players, offering contract manufacturing services for over two decades. It also enhances its brand presence in the domestic formulation market with a pan-India footprint.
For this transaction, JM Financial Limited acted as the exclusive financial advisor to Coromandel and is also the Manager to the open offer. Additionally, AZB & Partners served as the company’s Legal Counsel, E&Y handled financial and tax diligence, and SSPA & Co. Chartered Accountants acted as independent valuers.
Stock Performance
Shares of Coromandel International Ltd were trading at ₹1,801.90, up 2.30%, after the announcement.
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