Rallis buys 53.5% in Metahelix Life Scinces

Date:12-10-2010

Agrochemicals major Rallis India, a subsidiary of Tata Chemicals, has announced that it has acquired a 53.5% stake in Metahelix Life Scinces, a Bangalore based seeds research company, through an all cash deal of Rs 99.5 crore. Rallis will subscribe to an additional equity of Rs 25 crore to increase its stake in Metahelix to 59.02% on a fully diluted basis. The former additionally planned to increase its stake to 100%, over the next five years, pursuant to terms of the agreement.

For Rallis, whose strengths lie predominantly in pesticides and fertilisers this is the first inorganic foray into the seeds space.

Speaking to FE, KK Narayanan, co-founder and managing director of Metahelix said,” Rallis' competency in market reach and network along with our scientific strength will prove to be a winning model." Metahelix was co-founded by Narayanan and Gautham Nadig, both former Monsanto scientists. He added, "The promoters will continue with their roles in management now. Rallis has purchased the stake from the financial investors Kotak Bank's India Growth Fund and Nadathur Holdings."

While Kotak would be making a complete exit, Nadathur Holdings, backed by Infosys co-founder Nadathur Raghavan, would hold on to some of its stake.