Privi Speciality Chemicals to Acquire Privi Fine Sciences for Green Chemistry Expansion

On June 24, 2024, Privi Speciality Chemicals Limited announced the approval of a strategic acquisition to invest in Privi Fine Sciences Private Limited (PFSPL). This proposed acquisition involves subscribing to and/or acquiring equity shares of PFSPL amounting to ₹298,00,00,000, representing approximately 50.95% of PFSPL’s issued and paid-up share capital.

The investment in PFSPL forms a crucial part of funding for this project. As per the SEBI Listing Regulations, this transaction is considered a material-related party transaction and is subject to shareholder approval, the finalisation of binding agreements, the completion of due diligence, and the obtaining of required regulatory clearances.

Objective Of The Acquisition

The Company aims to invest in PFSPL at this stage because of their progress and believes it is the right time to establish infrastructure for commercial capabilities. This investment will complement the Company’s existing business operations.

Details Of The Acquisition

The Company intends to invest up to ₹298,00,00,000 crores, representing approximately 50.95% of PFSPL’s issued and paid-up share capital. As per the valuation report, this investment will be made at a price of ₹14.00 per Equity Share.

About Privi Fine Sciences Private Limited

Privi Fine Sciences Private Limited (PFSPL) operates in the speciality and aroma chemicals industry, focusing on green science chemistry. It is currently advancing its research and conducting pilot tests for its products in this field. It operates one manufacturing unit in Lote, Chiplun, Maharashtra, which is operational. To expand its’ Green Science’ business, it has acquired a second unit in Jhagadia, Gujarat, spanning 40 acres. For the financial year ended March 31, 2024, PFSPL reported a turnover of ₹4.72 crores.

About Privi Speciality Chemicals Ltd

Founded in 1985, Privi Speciality Chemicals Ltd (formerly Privi Speciality Ltd) specialises in manufacturing, supplying, and exporting aroma and fragrance chemicals. These chemicals are essential ingredients in products such as soaps, detergents, shampoos, and various fine fragrances.

On June 25, 2024, the share price of Privi Speciality Chemicals Ltd opened at ₹1,419.65, touching the day’s high at ₹1,436.15, as of 11:56 AM on the NSE.

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