NACL Stock Price Rises by 60% in 4 Days Amidst News of Coromandel’s Plan to Acquire a Majority Stake

NACL Industries share price hit a 52-week high of ₹107.40 on the BSE today. This was followed by Coromandel International’s announcement to acquire a majority stake in the company. In the past 4 trading sessions, the company’s stock price has risen by 60%. As per news reports, trading volumes have also surged to nearly 10.4 million equity shares on the BSE and the NSE.

Details of Coromandel International’s Acquisition 

As per news reports, Coromandel International will acquire a 53% stake in NACL Industries from its promoter, KLR Products Limited. It will pay around ₹820 crore at ₹76.7 per share to acquire the company. In compliance with SEBI’s Takeover Regulations, Coromandel has also proposed an open offer to purchase nearly 26% of NACL’s equity.

With this acquisition, Coromandel International is expected to become a leading player in India’s crop protection industry. It will enhance its contract manufacturing capabilities, and boost its domestic and foreign market presence.

As a result of this announcement, Coromandel International share prices also gained 6% in Monday’s intra-day trade and rallied by nearly 12% over the past 3 days.

Financial Ratings and Recent Downgrade

In Q3 of FY 2024-25, NACL Industries had reported a net loss of nearly ₹36 crore. This prompted CRISIL Ratings to downgrade its bank loan facilities from ‘Crisil BBB-/Negative/Crisil A3’ to ‘Crisil BB+/Negative/Crisil A4+’. This had increased liquidity pressures on the company and negatively impacted its business performance outlook.

The Strategic Positioning of Coromandel International and Future Prospects

The implementation of the nutrient-based subsidy (NBS) scheme is expected to minimise working capital requirements for Coromandel International. Its acquisition of NACL will further strengthen its key position in India’s agriculture sector by enabling it to launch new product offerings. This integration will also create a relatively more competitive and robust entity in India’s agrochemical industry.

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