Shares of Camlin Fine Sciences surged 9.7 percent to Rs 113 per share on June 12 after its Mexico-based wholly-owned subsidiary Dresen Quimica acquired complete stake in Belgium-based Vitafor Invest NV for just one euro.
With today's rise, the stock of this food grade antioxidants maker has surged over 21 percent in a week. However, it has tumbled 18 percent so far this year, as against 7 percent rise in benchmark Nifty 50 index.
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The share purchase agreement involved 100 percent take over of Vitafor Invest's subsidiaries, which include Addi-Tech, Vitafor NV, Vitafor China, Europe BioEngineering and a 45 per cent stake in Vial Sàrl.
Vitafor manufactures and trades in products catering to the animal feed industry. Vitafor offers a complete range of ffeed ingredients, nutritional products, hygiene products and disinfectants, allowing customers to buy all they need in one place.
During the calendar year 2023, Vitafor generated a turnover of 16.55 million euros with a loss of 1.18 million euros (after tax). For the aforesaid year the net worth of Vitafor was approximately 6.78 million euros.
ALSO READ: Camlin Fine Consolidated March 2024 Net Sales at Rs 401.69 crore, down 5.86% Y-o-Y
Meanwhile, Camlin Fine Sciences' wholly-owned arm Dresen Quimica is engaged in manufacturing and distributing specialty intermediate chemical solutions used by the feed, food and other industrial products.
The group intends to use the facility of Vitafor and its network to augment and grow in the European feed and pet food market and also in the African market
"The product basket of Vitafor will be aligned with the company’s Ggoup and marketing of the basket products will be carried out with the existing customers. The acquisition could be an excellent synergy to grow the product lines of Vitafor with the existing customers," the management said in an exchange filing.
In the March-ended quarter, Camlin Fine Sciences reported revenue of Rs 22 crore, while recording a net loss of Rs 44 crore.
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