Piramal Pharma Limited (PPL), a subsidiary of Piramal Enterprises Limited (PEL), and Navin Fluorine International Limited (Navin Fluorine) today announced a mutual agreement to increase Piramal's stake in Convergence Chemicals Private Limited (CCPL) to 100% by buying out Navin Fluorine's 49% stake in CCPL at INR 65.10 crores. Recently, PEL transferred its entire stake in CCPL to PPL.
CCPL, incorporated in November 2014, develops and manufactures specialty fluorochemicals, primarily starting material required for PPL's anesthetics production. CCPL's turnover during financial years 2019-20, 2018-19 and 2017-18 was Rs. 107.13 crores, Rs. 86.92 crores and Rs. 27.50 crores respectively.
As PPL continues to grow its anesthetics business, its resultant requirement for the starting material is expected to increase in the coming years. Similarly, it is expected that Navin Fluorine will leverage the developed chemistry for growth in certain specialty chemical segments. As a part of this arrangement, Navin Fluorine would obtain from PPL a perpetual license to use the technical knowhow for development and marketing of select products, and Navin Fluorine would continue to be a key raw material supplier to CCPL.
The Agreements are subject to customary regulatory closing conditions.
Piramal Pharma Limited ('PPL'), subsidiary of Piramal Enterprises Limited will acquire additional 3,43,04,900 equity shares of the face value of Rs.10 each of Convergence Chemicals Private Limited ('CCPL') for an aggregate cash consideration of Rs.65.10 crores from Navin Fluorine International Limited ('the Acquisition'). Consequent to this Acquisition, CCPL would become a wholly owned subsidiary of PPL.
The Acquisition is not a related party transaction and would be subject to customary regulatory approvals. The Acquisition is likely to be completed by 31st January, 2021.
Shares of PIRAMAL ENTERPRISES LTD. was last trading in BSE at Rs.1282.05 as compared to the previous close of Rs. 1298.95. The total number of shares traded during the day was 57761 in over 4280 trades.
The stock hit an intraday high of Rs. 1311.35 and intraday low of 1270.1. The net turnover during the day was Rs. 74640191.
Shares of Navin Fluorine International Limited was last trading in BSE at Rs.2121.25 as compared to the previous close of Rs. 2136.2. The total number of shares traded during the day was 6050 in over 1047 trades.
The stock hit an intraday high of Rs. 2180 and intraday low of 2116.1. The net turnover during the day was Rs. 12984764.