Kansai Nerolac Paints Ltd (KNPL) on March 3 informed the stock exchanges that its board has approved the acquisition of another 40 percent stake in Nerofix Pvt Ltd for Rs 37 crore, which will make it the sole owner of the company.
The stake will be acquired from Polygel India, with whom KNPL had started Nerofix as a joint venture in 2019.
"The Board of Directors at their meeting held today, Friday, 3rd March, 2023 has approved acquisition of shares (40 percent of the total shareholding) of Nerofix from Polygel," the regulatory filing stated.
The acquisition is expected to be completed by March 31, 2023, in the form of cash consideration of "Rs 37 crore", it added.
KNPL will be acquiring a total of 80 lakh equity shares of Rs 10 each from Polygel, taking the total number of shares it owns in Nerofix to 2 crore.
In January 2020, KNPL had acquired a 60 percent stake in Nerofix. With the decision to buy the remaining 40 percent shares, the company is set to expand its ownership to 100 percent.
"Consequent to the said acquisition of shares, Nerofix Private Limited will become a wholly owned (100 percent) subsidiary of Kansai Nerolac Paints Limited," the exchange filing noted.
Nerofix had reported a net revenue of Rs 110.41 crore in FY22. The company is involved in the business of construction chemicals, adhesives and sealants, and has a vast network of distributors in India and other parts of South Asia.
Ahead of the announcement, the shares of KNPL closed at Rs 411.90 apiece at the BSE, which was 1.09 percent higher than the previous day's close.