Coromandel International Limited, a leading agrochemical firm, saw its stock price jump 1.88% to ₹1,795 on the National Stock Exchange (NSE) on March 13, 2025. The rise follows the company's announcement of acquiring a 53.13% stake in NACL Industries Limited for ₹820 crores, marking a significant step in strengthening its foothold in the Indian crop protection industry.
Coromandel's strategic investment in NACL
Coromandel has entered into a share purchase agreement with NACL Industries, KLR Products Limited, and other stakeholders to acquire the controlling stake. The acquisition is priced at ₹76.7 per share and aligns with Coromandel's long-term growth strategy.
Additionally, the company has proposed an open offer to acquire up to 26% more equity, following Securities and Exchange Board of India (SEBI) takeover regulations. If successful, this move will further consolidate Coromandel's presence in the technical-grade manufacturing and formulation business.
For investors looking to invest in stocks, this acquisition signals a promising expansion for Coromandel, given its increased scale and entry into contract manufacturing.
Impact on Coromandel's growth
With NACL Industries' technical and formulation plants in Andhra Pradesh and a new facility in Dahej, Coromandel is set to enhance its manufacturing capabilities. This expansion will:
For those looking to invest in stocks, Coromandel's move into contract manufacturing could drive long-term growth.
Stock performance and investment outlook
Coromandel International's share price has surged over 63% in the past year, making it an attractive stock for investors. The latest acquisition positions the company for further growth in the agrochemical industry.
As of 10:45 AM on March 13, 2025, Coromandel's shares were trading at ₹1,789.10 on the NSE, reflecting a 1.55% rise for the day. This continued upward trend reinforces investor confidence in the company's strategic expansion.
For individuals looking to invest in stocks, Coromandel's growth trajectory makes it a compelling choice. With increased market presence, technological advancements, and a stronghold in the crop protection sector, the company is well-positioned for sustained growth.
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