Vijay Kedia’s Portfolio Multibagger Stock to Keep Under Radar as Company to Acquire 26 Per Cent of The Equity Share Capital of Heubach Colorants India Ltd
The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 1,200 per cent in a decade.
On Thursday, along with the market in red, multibagger Small-Cap stock plunged 2.98 per cent to Rs 1,071.70 per share from its previous closing of Rs 1,104.65 per share with an intraday high of Rs 1,120 and an intraday low of Rs 1,058.50. The stock’s 52-week high is Rs 1,235 and its 52-week low is Rs 440.
The stock name is SUDARSHAN CHEMICAL INDUSTRIES LTD.
Sudarshan Chemical Industries Limited, incorporated in 1952, is a leading colour solutions provider with a strong global outreach of 85+ countries in the production of performance colourants, an extensive range of organic, inorganic and pearlescent pigments and dispersions. SCIL’s product offerings also include classical azo pigments, high-performance pigments, effect pigments and pigment dispersions. SCIL has manufacturing facilities in Roha and Mahad in India. SCIL operates under 16 brands and has a 35 per cent domestic market share in its product category.
Axis Capital Limited, acting as the Manager to the Open Offer, has submitted a Public Announcement for the attention of the public shareholders of Heubach Colorants India Limited. This Open Offer is being made as per the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SEBI SAST Regulations), and involves the acquisition of up to 26 per cent of Heubach Colorants' equity share capital by Sudarshan Europe B.V., a wholly-owned subsidiary of Sudarshan Chemical Industries Limited, which is acting in concert with Sudarshan Europe. The offer pertains to the tendering and acquisition of shares as outlined in the Purchase and Transfer Agreement and Sale and Purchase Agreement. Shareholders are invited to participate during the designated tendering period.
The offer size involves the acquisition of 6,001,268 equity shares, which constitutes 26 per cent of Heubach Colorants' voting share capital, for Rs 578.11 per share. This offer price has been determined in compliance with the SEBI regulations and will result in a total potential payout of up to Rs 3,469,393,043.48, assuming full acceptance. The public announcement also highlights that due to the indirect acquisition of control over Heubach Colorants, the offer price will increase with interest, calculated at 10% per annum for the period between October 11, 2024, and the date of the detailed public statement (DPS). The DPS will provide further details on the adjusted offer price and terms.
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Sudarshan Chemical Industries Limited’s acquisition of Heubach Group has positioned it as a global leader in the pigment industry. This strategic move merges SCIL’s operational strengths with Heubach’s technological expertise, broadening the product portfolio and enhancing its market presence in Europe and the Americas. The acquisition not only added new assets and customer bases across 19 global sites but also laid out a clear recovery path for Heubach, which had been facing financial challenges.
Led by a strong management team, SCIL is poised to benefit from Heubach’s rich 200-year history and market position. The integration of both companies focuses on agility, customer satisfaction, and operational efficiency. This combination is expected to yield significant financial and strategic benefits, strengthening SCIL's position in the global pigment market while delivering enhanced value to its customers and stakeholders.
As of the June 2024 quarter, two ace investors, Vijay Kedia owns 10,00,000 shares or 1.44 per cent stake and Akash Bhanshali owns 56,05,577 shares or 8.10 per cent stake. The company has a market cap of Rs 7,419 and has been maintaining a healthy dividend payout of 19.6 per cent. The stock gave multibagger returns of 120 per cent in just 1 year and a whopping 1,200 per cent in a decade. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.