Anupam Rasayan zooms beyond 6 per cent on acquiring stake in Tanfac Industries

On Wednesday. at 10.05 am, the share of Anupam Rasayan was trading at Rs 1,091.95 per share, gaining 6.84 per cent on an intra-day basis on BSE.

Anupam Rasayan India Ltd, one of India’s leading custom synthesis and speciality chemical players on Tuesday announced that its Board of Directors has approved the acquisition of 24.96 per cent of the total equity shareholding of and joint control of Tanfac Industries Limited from Birla Group Holdings Private Limited (a promoter company which is part of Aditya Birla Group) and few other promoter group of TIL and the launching of an open offer under the Securities Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011 to acquire a further 26 per cent shareholding from the public shareholders of TIL.

ARIL has also executed an amendment agreement to the joint venture agreement dated October 4,1980 between Tamil Nadu Industrial Development Corporation and Birla Group Holdings Private Limited pursuant to which ARIL will replace BGH as the joint venture partner of TIDCO in TIL, subject to compliance with the Securities Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations, 2011. The consideration for the acquisition of shares from the Sellers is Rs 148.14 crore and the open offer (assuming full acceptance) is Rs 154.31 crores which will be funded through debt. Pursuant to the acquisition, ARIL will become a promoter and will have joint control in TIL along with TIDCO.

Incorporated in 1972, TIL is a specialty fluorides chemical manufacturer. The company is also a leading producer of Hydrofluoric Acid and is engaged in manufacturing other organic and inorganic fluorine-based products such as Aluminium Fluoride, Sodium Silico Fluoride, Potassium Fluoride. In addition to that, Sulphuric Acid and Oleum are key products of the company. The company has one manufacturing unit at Cuddalore, Tamil Nadu, spread across 60 acres and strategically located adjacent to the Cuddalore Port. TIL posted revenue of Rs 253 crore, EBITDA of Rs 65 crore and PAT of Rs 6 crore till Q3 of FY2022. The deal is taking place at P/E multiple of approximately13 times considering PAT of trailing four quarters.

This acquisition is a strategic decision to expand the product series under the fluorination chemistry of ARIL. It brings synergies by way of backward integration initially as ARIL is one of the largest consumers of Potassium Fluoride in India which would be supplied by TIL. With access to these basic fluoro compounds and the expertise of ARIL’s core R&D team we will be able to introduce niche value adding fluorine derivatives in the coming years. ARIL will also strengthen the TIL’s team by adding highly experienced professionals in its R&D and plant level.

On Wednesday, at 10.05 am, the share of Anupam Rasayan was trading at Rs 1,091.95 per share, gaining 6.84 per cent on an intra-day basis on BSE.