Scientist RA Mashelkar’s Gharda Medical & Advanced Technologies Foundation will sell its 57.5% in agrochemicals maker Gharda Chemicals and use the proceeds to build a pipeline of innovative products and technologies for the chemical and metal industry, said a person with direct knowledge of the plan.
The not-for-profit organisation, which already has many patents including for extracting titanium from a waste material generated during production of aluminium from bauxite, has appointed US boutique bank Martywolf to scout for a buyer.
Going by other similar transactions, bankers said, the debt-free company could rake in a valuation of more than 14 times its operating profit. Gharda Chemicals posted an operating profit of Rs 683.16 crore on revenue of Rs 2,608 crore in fiscal 2018. Based on that, the valuation could be more than Rs 9,500 crore.
Around 10% of the Gharda Chemicals is owned by its employees and the rest by minority shareholders.
The stake sale will ensure the sustainability of the company and will help the foundation ramp up development and research work, the person said. Gharda Chemicals’ technocrat founder, 90-year-old Keki Gharda, does not have successor in his family to run the business.
“GMATF (the foundation) can ramp up development and research work on various technologies much faster without taking outside financial help,” said another person aware of the development, adding that funding currently was restricted to dividends from Gharda Chemicals.
