Rallis India, a subsidiary of Tata Chemicals has announced the acquisition of a majority stake of 53.5 per cent in Metahelix Life Sciences. The acquisition is an all-cash deal of Rs 99.5 crore funded largely through internal accruals, said a stock exchange announcement.
Metahelix Life Sciences is a Bangalore-based seeds research company with a portfolio of seeds successfully commercialised over the last three years. Shares of Rallis gained nearly two per cent on the National Stock Exchange (NSE) during morning trades. At 11:30am, the shares were trading at Rs 1,343.90, up Rs 21.85.
Rallis will subscribe to an additional equity of Rs 25 crore to increase its stake in Metahelix to 59.02 per cent on a fully diluted basis. Further, pursuant to the terms of the definitive agreements signed, Rallis will enhance its shareholding to 100 per cent over a period of five years.
Incidentally, the acquisition is Rallis' first inorganic foray in the seeds space providing a strong platform in the entire value chain that comprises breeding, production and marketing of seeds.