Shares of a well-diversified chemical company, Meghmani Organics gained 3.6 percent on Monday as the company acquired 24.97 percent equity stake in Meghmani Finechem.
The company’s wholly-owned subsidiary, Meghmani Agrochemicals (MAPL) gave successful exit to International Finance Corporation (IFC) by acquiring 24.97 percent equity stake held by IFC in Meghmani Finechem.
Ankit Patel, CEO of Meghmani Organics said,
Our incursion into basic chemicals has proved instrumental in the strategic growth of MOL. This segment has been demonstrating robust growth with strong drivers in place.
MAPL has acquired 24.97% equity stake held by IFC in Meghmani Finechem Limited (MFL) for a consideration of Rs221.2cr.Trading currently at Rs. 101.35, Meghmani Organics Ltd is trending up by 2.22%(Rs. 2.2) in comparison to its previous closing of Rs99.15 on the BSE.
Given the strong demand for basic chemicals in India and globally, the Caustic Soda plant capacity in MFL is currently being upgraded to 2,50,000 MTPA as part of the group’s Rs0.54 cr capex announced in FY18.
MOL had acquired IFC in 2008 as a strategic investor in its Basic Chemicals business. The fund was used for investing Rs, 46.1 cr towards building environmental-friendly Caustic Chlorine project using energy efficient membrane cell technology.
In 2012 too, IFC had invested towards the expansion of the plant capacity. A long-term loan of Rs, 80 cr was also provided to the project by IFC that is fully paid.