BASF India Ltd.’s board of directors has approved the in-principle demerger of its agricultural solutions business into a separate listed entity. This announcement, made during the board meeting on December 19, 2024, is aligned with the global corporate strategy of its German parent company, BASF SE.
The agricultural solutions segment contributed ₹2,006.46 crore in revenue during FY24, accounting for 14.57% of BASF India’s total revenues for the financial year ending March 31, 2024. The segment has been identified as an important contributor to the company’s portfolio, making the demerger a major restructuring move.
The company stated that the demerger aims to provide operational flexibility, enable differentiated steering, and create value. By separating the agricultural solutions business into a distinct legal entity, BASF India seeks to streamline operations and align its structure more closely with the evolving goals of the global BASF group.
This development is part of BASF SE’s global strategy, which was first announced in December 2023. The parent company plans to complete the legal and Enterprise Resource Planning (ERP) separation of the agricultural solutions business by 2027. BASF SE is also preparing for a potential initial public offering (IPO) for this business globally and is considering the possibility of listing a minority stake in the mid-term.
To oversee the demerger process, BASF India has constituted a Committee of Independent Directors. This committee will evaluate the various aspects of the proposed demerger and provide recommendations to the board. Disclosures and announcements in compliance with applicable regulations will follow the committee’s recommendations.
At 11:50 AM, BASF India’s stock was trading at ₹5,764.00, up ₹303.55 (5.56%) for the day, with a year-to-date gain of 87.53%.
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.
Published on: Dec 20, 2024, 3:50 PM IST
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