After the company announced that it was acquiring the global pigment division of Germany’s Heubach Group, shares of Sudarshan Chemical Industries surged 20% on Friday, October 11 to reach a 52-week high.
The company in an exchange filing today said, “… Sudarshan Chemical Industries Limited has entered into a definitive agreement on 11th October 2024, whereby Sudarshan Europe BV, a wholly-owned subsidiary of the company in the Netherlands (“SEBV Europe”) shall acquire Global Pigment Business Operations of the Heubach Group of Germany for a total consideration of Euro 127.5 Million (Approx. ₹1,180 crores).”
Heubach holds a significant position in the speciality chemicals sector. It produces dyes, dispersions, anti-corrosion pigments, organic and inorganic pigments, and dyes.
The proposed translation is an all-cash agreement for a one hundred per cent stake in Heubach Group firms.
If all usual closing conditions are met, such as regulatory and shareholder approval, the transaction is anticipated to close in three to four months.
More About Heubach Group
The history of the Heubach Group stretches back to than 200 years. By purchasing BU Pigments from Clariant in 2022, the business rose to become the second-biggest pigment player globally.
In both FY21 and FY22, Heubach recorded revenue of billions of euros. The business is well-represented throughout the world, particularly in Asia Pacific, the Americas, and Europe.
Stock Price Performance
The shares on the BSE shot up 19.99 per cent to ₹1,216.55 after the announcement. It had a great day’s end, rising 19.11% to ₹1,207.50 apiece.
Since hitting its 52-week low of ₹440, the stock has increased 174%. The company has increased by 144% over the last year, providing investors with multi-bagger gains. In the last month alone, it has gained 17.5%.
