Klass Pack Limited ("KPL"), a 82.49% subsidiary of Borosil Limited ("Company"), has today, signed a binding share purchase agreement ("SPA") with Mr. Hemant Goel and others, majority shareholders ("Sellers") of Goel Scientific Glass Works Limited ("Goel Scientific"), for purchase of initial 90.17% stake in Goel Scientific (with a provision to increase its stake to up to 100%) for consideration as detailed in the annexure attached hereto, subject to completion of condition precedents as detailed in the SPA.
Goel Scientific, incorporated on December 8, 1998, is a public limited company having its registered office in Vadodara, Gujarat, India. It is one of the oldest scientific glassware companies in India and has some of the most skilled glass blowing capabilities in the world. Mr. Hemant Goel is the founder / promoter of Goel Scientific and holds the position of Managing Director on the board of Goel Scientific. He has more than 45 years of experience in Glass blowing and fabrication works. Goel Scientific manufactures industrial glass process systems as well as laboratory glassware and has a team of expert glass blowers that are skilled at manufacturing borosilicate glass vessels up to a capacity of 500 litres. Goel Scientific is one of the leading exporters of process system components worldwide. Goel Scientific's products find wide use in the R&D and production departments of the pharmaceutical, defence, agricultural research and chemical industries. Besides the domestic market, Goel Scientific has also built key relationships for selling its products in various international geographies and to key International OEMs. Goel Scientific operates from its two manufacturing facilities situated in Vadodara. Some of the esteemed clients of Goel Scientific include Sun Pharma, Cadilla Pharmaceuticals, Hindustan Unilever, Dabur and Zydex.
KPL, currently, is in the business of primary pharmaceutical packaging and is manufacturing and supplying tubular glass vials and ampoules to the pharmaceutical industry. Upon approval of the Hon'ble National Company Law Tribunal, Mumbai Bench, to the ongoing Composite Scheme of Arrangement, ("Composite Scheme"), amongst the Company, KPL and Borosil Technologies Limited (wholly owned subsidiary of the Company), the Scientific and Industrial products ("SIP") business viz. lab glassware, lab instrumentation and pharma packaging business of these three entities will stand consolidated in KPL. KPL is proposed to be renamed as Borosil Scientific Limited and shall get listed on BSE and National Stock Exchange of India (NSE).
This acquisition of Goel Scientific shall bring synergy to the SIP business. With this acquisition, KPL will make an entry into the growing market of industrial process systems in Research and manufacturing sectors of API/Bulk Drug/Intermediates, Chemicals/Agro-chemicals, Fertilisers and Defence. The combined operations shall give advantage of complementary skill sets and result in significant benefits such as, greater market penetration, enhanced product offerings and innovative range of products, entry into new markets, new process learnings, availability of highly skilled glass blowing capabilities, input cost optimisation and potential sourcing benefits.
Upon completion of the transaction, Goel Scientific will become a subsidiary of KPL and in turn a step-down subsidiary of the Company.
Shares of Borosil Limited was last trading in BSE at Rs. 327.40 as compared to the previous close of Rs. 312.25. The total number of shares traded during the day was 8077 in over 543 trades.
The stock hit an intraday high of Rs. 330.05 and intraday low of 318.80. The net turnover during the day was Rs. 2629803.00.