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Astral Poly completes acquisition of Resinova Chemie

Astral Poly Technik Ltd has completed the acquisition of the balance 24 per cent equity stake in specialty chemicals manufacturer Resinova Chemie Ltd from its founder Vijay Parikh.

The company, which manufactures chlorinated polyvinyl chloride (CPVC) plumbing systems, paid about Rs 73 crore (about $11 million) for the purchase, according to a stock market disclosure.

In a parallel development, it made an allotment of 1.38 million equity shares on preferential basis to Parikh, who had founded Kanpur-based Resinova Chemie in 1995, at a share price of Rs 425.93 apiece, aggregating Rs 59 crore (approximately $9 million).

Astral Poly had acquired 76 per cent equity stake in Resinova Chemie for Rs 212.8 crore (around $34 million then) in November last year, valuing Resinova at Rs 280 crore (nearly $44.7 million). Taking this as the benchmark, the value of the balance 24 per cent would have been around Rs 67.2 crore (a little over $10 million). Astral Poly now has paid a tad more than this.

In August last year, Astral Poly had acquired 80 per cent stake in UK-based adhesives and sealants manufacturer Seal It Services Ltd for around Rs 44 crore.

In August 2015, private equity firm WestBridge Capital had exited from Astral Poly by selling its 3.6 per cent stake in Astral Poly. In July 2015, it had sold 2.5 per cent stake in the company.

Astral’s shares were trading at Rs 414.55, up 0.04 per cent, on BSE on Tuesday morning.

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