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NACL to raise India Rupees 115 crore via equity issue, Krishi Rasayan Group to invest
Feb. 11, 2019
India
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Krishi Rasayan Group, the incoming investor, will hold around 16% of the equity of NACL upon completion of infusion of funds. The promoters are also investing ₹15 crore through equity warrants. Post the issue, the promoters will continue to have controlling interest by holding around 63% of the equity. There will be no change in the management of NACL that would continue to be run by professional managers.
A release from the company on board of directors approval, on February 8, to raise funds, said the proposal would be placed before shareholders on March 7.
Krishi Rasayan Group, a player in agrochemical generic space, has revenues of around ₹1,200 crore. It has presence in the Indian market and has made forays in export markets. This partnership envisages NACL leveraging the group’s technicals plant by introducing new generic products and enhancing capacity utilisation.
NACL posted ₹1.42 crore profit after tax during the quarter ended December. The PAT in the year earlier period was at the same level. Total income was ₹201.59 crore (₹188.50 crore), an increase of 7%.
Growth in revenue has been driven by export of technicals, mainly on account of increased supplies to the contract manufacturing customers. The release said there had been a decline in the Q3 of domestic retails, mainly due to the Rabi monsoon being subdued resulting in lower acreages being cultivated of paddy, please, than that of the previous year, thus impacting sales.
On the market scenario and outlook, the company said raw material supply from China continued to be an area of concern. In view of the overall reduction of acreage of paddy, there is inventory build up in the domestic market and this will have an impact in the coming quarters. The order book for exports is encouraging for the next quarter; however, it will be based on the supplies of the raw-material.
Source: The Hindu
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