The board of directors at PCBL Ltd on Tuesday (November 28) gave the green light for the acquisition of 100% of the issued and paid-up share capital of Aquapharm Chemicals Private Ltd (ACPL) for ₹3,800 crore.

Share Market Live

NSE

The in-principle approval, granted at the meeting held on November 28, 2023, involves the purchase of 212,172 shares of ACPL at an aggregate consideration of ₹3,800 crore, subject to agreed adjustments, according to a stock exchange filing.

The share purchase agreement, executed on the same day between PCBL Ltd and ACPL, along with key stakeholders, outlines the proposed transaction, contingent upon obtaining necessary approvals and meeting customary conditions.

Also Read: Delhi HC 'apalled' at Ashneer Grover tweets against BharatPe, slaps costs of ₹2 lakh

"...the company has executed a share purchase agreement dated 28 November 2023 with ACPL, Vimal V. Mangwani, Dharmesh Mangwani, Nitin Raojibhai Desai and other shareholders of ACPL, for undertaking the proposed transaction, subject to inter alia obtaining all necessary approvals and fulfillment of other customary conditions," PCBL said.

PCBL Ltd plans to finance this landmark acquisition through a combination of internal accruals and external fundraising by the company and its affiliates or associates.

This strategic acquisition marks PCBL Ltd's entry into the global specialty segments of water treatment chemicals and oil and gas chemicals, representing the first milestone in the realisation of its vision to build a multi-platform global specialty chemical business portfolio.

Aquapharm Chemicals Private Ltd, a Pune-based specialty chemicals company, boasts a consolidated turnover of ₹2,008 crore for the fiscal year ending March 31, 2023.

ACPL is recognised globally, particularly in the water treatment sector, manufacturing a range of specialty chemicals such as phosphonates, biodegradable chelating agents, polymers, biocides, and oil field chemicals with applications in diverse industries.

Also Read: Raymond boss Gautam Singhania writes to board and employees, assures smooth functioning of biz

ACPL, operational since 1974, has manufacturing facilities in India, the United States, and Saudi Arabia, extending its global reach through subsidiaries. The acquisition aligns seamlessly with PCBL Ltd's existing chemical space and signifies a pivotal step toward establishing a robust presence in the competitive global specialty chemical market.

The proposed transaction is currently under the regulatory microscope, awaiting approval from the Competition Commission of India (CCI) and other related filings.

The acquisition is projected to conclude in the next 2-3 months from the date of the share purchase agreement execution if all conditions are met.

Shares of PCBL Ltd ended at ₹254.30, down by ₹7.60, or 2.90%, on the BSE.

(Edited by : Shoma Bhattacharjee)