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Vinati Organics Expands with Subsidiary Investment

25 June 20243 mins read by Angel One
Vinati Organics Limited invests ₹55.77 crore in its wholly-owned subsidiary, Veeral Organics Pvt. Limited, reinforcing its speciality chemical footprint.
Vinati Organics Expands with Subsidiary Investment
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On June 25, 2024, Vinati Organics Limited subscribed to 5,57,70,950 fully paid-up equity shares with a face value of ₹10 each, totalling ₹55,77,09,500. Vinati Organics Limited acquired 100% of the share capital and control of Veeral Organics Private Limited.

This investment was made through a rights issue, and these shares will rank equally with the existing equity shares of Veeral Organics Pvt. Ltd.

Since Veeral Organics Private Limited (VOPL) is a wholly owned subsidiary of Vinati Organics Limited (VOL), the provisions of Related Party Transactions under SEBI (LODR) Regulations, 2015, do not apply to any further acquisition of equity shares in VOPL.

Purpose and Effects of the Acquisition

Veeral Organics Private Limited’s primary business is manufacturing organic fine speciality chemicals, which aligns with Vinati Organics Limited’s core business.

On May 6, 2024, Vinati Organics Limited recently subscribed to an additional 5,80,58,500 fully paid-up equity shares of ₹10 each, totalling ₹58,05,85,000. This investment was made through the rights issue of its wholly-owned subsidiary, Veeral Organics Pvt. Ltd and the new shares will have the same rights as the existing equity shares.

About Veeral Organics Private Limited

Veeral Organics Private Limited (VOPL) was incorporated on October 5, 2020, under the Indian Companies Act, 2013. It is a wholly-owned subsidiary of Vinati Organics Limited (VOL). Its primary business involves the manufacturing of fine organic speciality chemicals.

About Vinati Organics Ltd

Vinati Organics Ltd, established in 1994, is a prominent Indian speciality chemicals manufacturer. The company specialises in a diverse array of speciality chemicals, including monomers, polymers, terpenes, aroma chemicals, and speciality intermediates. Renowned globally, Vinati Organics operates in more than 30 countries and ranks among the foremost producers in its sector.

Vinati Organics’ key products include VINATISOL, VINATINOL, and VINATIPURE. The company has a robust presence in the pharmaceutical industry, supplying materials essential for drug and medical product manufacturing.

On June 25, 2024, the share price of Vinati Organics Ltd opened at ₹1,975.00, touching the day’s high at ₹1,977.50, as of 02:50 PM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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