BASF India Board Approves Agricultural Solutions Unit Demerger

BASF India Limited has approved the demerger of its Agricultural Solutions business into a separate entity – BASF Agricultural Solutions India Ltd. The decision was taken during the board meeting held on May 14, 2025, following earlier in-principle approval in December 2024 and the acquisition of 100% equity in the resulting company in April 2025. The scheme will proceed under Sections 230 to 232 of the Companies Act, 2013.

As of 10:30 AM on May 15, 2025,  BASF India share price was trading at ₹4,494.70, a 0.42% increase, with a 25.82% decline over the past six months and a 1.96% drop over the past year.

Scope of Business

The Agricultural Solutions division includes the manufacturing and distribution of crop protection chemicals such as pesticides, fungicides, herbicides, insecticides, plant growth regulators, fertilisers, and other related products. It also covers digital farming technologies. This segment contributed ₹2,064.73 crore in revenue during FY 2024–25, accounting for 13.6% of the company’s total turnover.

Share Distribution and Capital Structure

As part of the arrangement, eligible shareholders of BASF India will receive one fully paid-up equity share of ₹10 each in BASF Agricultural Solutions India Ltd for every one share held in BASF India. No cash payment is involved. Post-demerger, promoter shareholding in the new company will stand at 73.33%, with public shareholders holding 26.67%.

Listing Plans

The equity shares of BASF Agricultural Solutions India Ltd are proposed to be listed on the BSE and NSE. Listing will take place after obtaining approvals from SEBI, the stock exchanges, shareholders, creditors, and the National Company Law Tribunal.

Read more: Best Fertiliser Stocks in May 2025!

Conclusion

The demerger is part of a larger corporate restructuring being undertaken by the parent company, BASF SE. The objective is to separate the agricultural division from the remaining businesses and operate each under different management and operational setups.

The company will submit the scheme and relevant documents to regulatory authorities and stock exchanges. Updates will be made available on the company’s website once filed.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.