The Board of Kansai Nerolac Paints (KNPL) has approved the acquisition of shares (40 per cent of the total shareholding) of Nerofix from Polygel for a cash consideration of ₹37 crore.
In January 2020, KNPL had acquired a 60 per cent stake in Nerofix. With the decision to buy the remaining 40 per cent shares, the firm is set to expand its ownership to 100 per cent.
“Consequent to the said acquisition of shares, Nerofix Private Limited will become a wholly owned (100 per cent) subsidiary of Kansai Nerolac Paints Limited,” the exchange filing noted. The acquisition is expected to be completed by 31 March this year.
“The Board of Directors at their meeting held today, Friday, 3rd March, 2023 has approved acquisition of shares (40 percent of the total shareholding) of Nerofix from Polygel,” the regulatory filing stated.
80,00,000 equity shares of ₹10 each i.e. 40 per cent of the total shareholding of Nerofix is being acquired. Post acquisition, the Company will hold 2,00,00,000 equity shares of ₹10 each.
Nerofix had reported a net revenue of ₹110.41 crore in FY22. The firm is involved in the business of construction chemicals, adhesives and sealants, and has a vast network of distributors in India and other parts of South Asia.
Ahead of the announcement, KNPL shares settled at ₹411.90 apiece at the BSE, which was 1.09 per cent higher than the previous day’s close.