- The global asset management firms & the two companies have already submitted their bids to acquire the majority controlling stake.
- The stake currently held by GMATF could be worth anywhere between INR 5,600 crore & INR 6,000 crores.
Gharda Chemicals Ltd (Gharda Chemicals), a renowned Indian research & development chemicals company, has reportedly received interests from asset management firms, KKR & Co. and Blackstone Group and from United Phosphorus Ltd & Godrej Agrovet, to acquire a controlling stake in the company.
The interested buyers have already submitted their independent bids to procure 57.7% controlling stake in the Indian agrochemicals manufacturer, claim sources that are privy to the developments.
According to a report by VCCircle, the bids are coming in as the stake’s current owner, Gharda Medical and Advanced Technologies Foundation (GMATF) led by Scientist R A Mashelkar, has decided to sell off its 57.7% control in the company.
Reportedly, the GMATF stake could be worth anywhere between INR 5,600 crores & INR 6,000 crores. The demand includes the control premium as well as the non-compete fee, with the debt-free chemical industry player being valued at approximately INR 9,500 crores.
The company had reportedly recorded an operating profit of about INR 683 crores on revenues of around INR 2,608 over the fiscal year 2018. Now the firm could rake in a valuation that is over 14 times its own operating profits.
For strategic buyers like United Phosphorus & Godrej Agrovet, procuring the majority stake in the company would mean gaining a foothold in the crop protection & agrochemicals market and would also grant them entry into the segment of veterinary drugs.
For the record, following U.S., Japan & China, India is the world’s fourth-biggest agrochemicals producer with its market currently valued at $4.1 billion and is expected to witness a 8.3% growth and reach a valuation of $8.1 billion by 2025.
According to reports, GMATF intends to utilize the proceeds to develop an array of technologies & products for the metals & chemicals industry.