Camlin Fine Sciences rallied 4.58% to Rs 172.55 after the company said it will purchase 69.33% in AlgalR NutraPharms.
On 15 May 2021, a special committee of the board of Camlin Fine Sciences approved strategic investment in AlgalR NutraPharms (AlgalR) by way of acquisition of equity shares amounting to 69.33% of the existing paid‐up share capital. The committee has also approved subscription to the equity shares of AlgalR. Upon consummation of the secondary purchase and primary subscription, the company will hold 80% of the paid‐up capital of AlgalR on a fully diluted basis. The company will now be executing the investment agreement, share purchase agreement and the incidental agreements/documents with AlgalR and its promoters/other shareholders.AlgalR NutraPharms will provide an opportunity to Camlin Fine Sciences for expanding its footprint into the nutraceuticals segment.
The company added that the total cost of the said acquisition shall not exceed Rs 6.50 crore. The cost of acquisition stands at Rs 70 per equity share to be executed in cash within a period of 30 days.
On a consolidated basis, Camlin Fine Sciences' net profit jumped 198.8% to Rs 15.42 crore on a 8.8% rise in net sales to Rs 297.92 crore in Q3 FY21 over Q3 FY20.
Camlin Fine Sciences is a provider of high-quality shelf-life extension solutions including antioxidants, aroma ingredients and performance chemicals.
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