Godrej Agrovet buys Astec Life Sciences, makes open provide

The acquisition to assist Godrej Agrovet to foray into fungicides enterprise.

The acquisition to assist Godrej Agrovet to foray into fungicides enterprise.

Diversified Agribusiness firm Godrej Agrovet Ltd (GAVL), a subsidiary of Godrej Industries Ltd, has introduced the acquisition of promoter holding of 45.29 per cent in Astec Life Sciences Ltd. (ALS), thereby triggering an open provide to accumulate an extra 26.05 per cent stake from minority shareholders. The open provide commences at this time ( Monday).

Astec, an Agro chemical firm is listed on the NSE and BSE with a market cap of round Rs. 450 crore.

The promoters’ stake has been acquired at Rs.190 per share and it has value Godrej Agrovet Rs.167 crore.

The open provide value has been fastened at Rs.246 per share.

In case the open provide is totally subscribed, Godrej Agrovet will spend extra Rs.125 crore to adjust to the SEBI tips.

Astec has a big deal with fungicides. It operates within the area of technical in addition to bulk gross sales within the nation and in addition exports its merchandise to greater than 30 nations by way of its over 100 registrations.

The corporate additionally has contract manufacturing enterprise, which undertakes manufacturing for its multi-national shoppers. In addition to, it has good course of and manufacturing functionality, which may be leveraged by Godrej Agrovet to get into different merchandise.

“It’s a excellent match into our enterprise and it’s a backward integration of our agro chemical substances enterprise which is rising quickly,” Balram Singh Yadav. Managing Director, Godrej Agrovet advised
The Hindu .

“We’ll retain the prevailing administration group together with the present Managing Director Ashok Hiremath and all workers. This firm will probably be run independently,” Mr Yadav stated.

Astec has 200 workers and two manufacturing amenities at Mahad.

Godrej Agrovet has a diversified agri retail enterprise together with a quick rising agro-chemical enterprise targeted on plant development regulators and herbicides. It’s a chief in selective post-emergence cotton herbicides in India.

This acquisition will permit the corporate to increase its agro-chemical portfolio into fungicides. Astec may also have the chance to promote its merchandise by way of Godrej Agrovet’s channels. 

As well as, each firms may have synergistic advantages of present molecules in addition to co-development of recent molecules, officers stated.

Ashok Hiremath, Chairman and Managing Director, Astec stated “This funding by Godrej Agrovet recognises the expansion potential of our enterprise stemming from our robust product growth capabilities, top quality manufacturing amenities and lengthy standing relationships with international clients.

Supply hyperlink