Chemicals manufacturer Indo Amines NSE 0.00 % is going to merge itself with Core Chemicals and Key Organics, a wholly owned subsidiary of Indo Amines, the company informed the Bombay Stock Exchange on Thursday.
The board of directors of Indo Amines in their meeting held on September 25 have approved the merger which is likely to help Indo Amines increase its revenue and profit as well as utilise its approvals of agro surfactants and emulsifiers with multinational companies in India to export these products.
The merger will also help the company in achieving operational synergies, leveraging assets and capabilities and lower cost of capital.
The shareholders of Core Chemicals will be issued 50 shares of Rs 10 each of Indo Amines for every share held in it. There will be no issue and allotment of equity shares of Indo Amines to the shareholders of Key Organics Private limited, since it is the wholly owned subsidiary of Indo Amines.
Post completion of amalgamation, promoter’s shareholding in the Indo Amines is expected to reduce to 70.06 per cent on a post amalgamation shareholding pattern from 74.26 per cent held earlier.
“The amalgamation will strengthen our position, significantly expand our product offerings and sales platform to access a much larger client base and allow for a pooling of resources and know-how,” Vinay Palkar, managing director at Indo Amines said in a release.
“We believe that this will act as a strong platform from which we can embark on the next phase of our growth and unlock significant value for the shareholders. We are convinced that one strong entity, organization and management will increase long-term value for all stakeholders,” Palkar added.
Source: Economic Times