CALCULATE YOUR SIP RETURNS

BASF India Board Approves Demerger of Agricultural Solutions Business

Updated on: Dec 20, 2024, 3:50 PM IST
BASF India approves the demerger of its agricultural solutions business into a separate listed entity by 2027.
BASF India Board Approves Demerger of Agricultural Solutions Business
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

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.

Business Contribution & Revenue

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.

Objectives of the Demerger

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.

Alignment with BASF SE

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.

Steps in the Process

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.

Share Price Performance

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

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 2.5 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 2.5 Cr+ happy customers