Friday, July, 19, 2024 08:58:12

Crystal Crop Protection, an R&D-based specialty chemicals company headquartered in Delhi, is reportedly purchasing major fungicide and insecticide brands from the Swiss giant Syngenta AG. The portfolio of Syngenta’s brands that are to be acquired by Crystal Crop comprises Blue Copper, Tilt, and Proclaim.

Apparently, Crystal Crop has been on an acquisition spree of late and if the transaction materializes, it will mark Crystal Crop’s fourth acquisition in a row for FY 2018. According to sources aware of the development, backed by Everstone Capital, Crystal Crop is proposing to raise Rs 1,000 crore via initial public offering (IPO).

If reports are to be believed, Crystal Crop has recently received final observations from market watchdog Sebi, pertaining to the DRHP (draft red herring prospectus) it filed in an IPO for raising the Rs 1,000 crore. The IPO comprises fresh issue of shares up to Rs 545 crore and an offer for sale of approximately Rs 455 crore.

As reported by DRHP, the net proceeds of the public offering will be used for funding acquisitions, repayment of loans, strategic initiatives, and other general corporate purposes.

The deal is expected to boost Crystal’s penetration in cotton, rice, pulses and vegetable markets of India. Besides, agriculturists will be facilitated with optimal solutions for crop protection, claim sources familiar with the development.

For those uninitiated, Crystal Crop this year has taken over a chemical plant from Cytec India Specialty Chemicals and Materials, followed by the Indian sorghum, pearl millet & fodder seeds business of Syngenta India. It also acquired the four brands from FMC India (the Indian unit of US-based chemicals and insecticide manufacturer FMC) including Metcil, Splendour, Furadan and Affinity Force.

Crystal Crop refused to comment on the matter, while both the parties kept away from disclosing the final value of the transaction.