PI will acquire Isagro Asia which is engaged in contract manufacturing, local distribution and exports of agrochemicals
Shares of PI Industries rallied 4 percent intraday on September 13 after the agri-sciences company executed an offer for acquisition of 100 percent stake in Isagro Asia.
The stock has been one of biggest gainers in the past one year despite weakness in the market, rising 66 percent. It was quoting at Rs 1,280.75, up Rs 38.50, or 3.10 percent, on the BSE at 1212 hours.
"PI Industries has executed an offer with promoter Isagro SpA (a company incorporated in Italy) for acquisition of Isagro Asia, who is engaged in contract manufacturing, local distribution and exports of agrochemicals," the company said in a BSE filing.
The transaction value is estimated around Rs 345 crore net of cash and debt subject to closing adjustments, it added.
PI Industries said the consummation of the proposed transaction is expected in Q3FY20 subject to finalisation of definitive agreements, customary closing conditions and regulatory approvals.
PI sees encouraging growth opportunities across its business model and seeking initiatives to augment business progress.
"The proposed acquisition will provide PI access to additional manufacturing capacities to meet growing demand of global customers and synergy benefits of adjacent manufacturing site while de-risking the supply chain of few products. In addition, this will also help PI strengthen its position in Indian market by leveraging complementary product portfolio and distribution channel of Isagro Asia," company said.
Earlier this week, Equirus initiated coverage on the stock, with a long call and a target price of Rs 1,890, implying 56 percent potential upside from current levels.The brokerage expects a 23 percent revenue CAGR over FY19-FY22 and said revenue growth would drive profit CAGR of 27 percent.The Great Diwali Discount!
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