Grasim Industries will likely be promoting the corporate’s fertiliser enterprise, Indo Gulf Fertilisers (IGF), by the use of a stoop sale to Indorama India (IIP), a subsidiary of Indorama Company, Singapore, for a money consideration of Rs 2,649 crore.
Indo Gulf Fertilisers is engaged in manufacture, commerce and sale of urea and different agri-inputs with a 1.2 MTPA urea manufacturing plant at Jagdishpur in Uttar Pradesh. The divestment of the fertiliser enterprise is a major worth unlocking train for Grasim. It’s going to allow the corporate to pursue development alternatives in its core companies, the corporate stated in a press release.
Dilip Gaur, managing director, Grasim Industries, stated, “The divestment of the fertiliser enterprise by Grasim is a strategic portfolio selection and unlocks worth for the shareholders. It’s according to the strategic thrust of the corporate to concentrate on core companies.”
Amit Lohia, vice chairman, Indorama Company, stated, “We’re happy that with this acquisition, the Shaktiman and Paras manufacturers will have the ability to be part of palms to supply an entire vary of merchandise for our farmers, together with urea, phosphate fertilisers, potash, soil well being merchandise, seeds and crop safety merchandise. We’re enthusiastic about this union and consider it should facilitate better entry and growth of top of the range agri inputs for the farming group.”
The transaction is topic to the required statutory and regulatory approvals, together with approvals of the NCLT, the inventory exchanges, SEBI, Competitors Fee of India, and the respective shareholders and lenders/collectors of every of the businesses.