Astral Poly Technik Ltd, which manufactures and markets chlorinated polyvinyl chloride (CPVC) plumbing system, has decided to buy the remaining 24 per cent equity stake in Kanpur-based specialty chemicals manufacturer Resinova Chemie Ltd, according to a stock market disclosure.
The board of directors of the company will meet on September 17 to consider the acquisition and preferential issue of equity shares to Vijay Parikh, who had founded Resinova Chemie in 1995.
It did not say if the transaction involves a stock deal and preferential allotment to Parikh in lieu of his balance stake in Resinova Chemie.
Astral Poly Technik 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). If this is taken as a benchmark it would pay Rs 67.2 crore (a little over $10 million) or more for the balance.
The acquisition was Astral Poly’s second in the adhesive space in 2014. In August last year, it had acquired an 80 per cent stake in the UK-based adhesives and sealants manufacturer Seal It Services Ltd for around Rs 44 crore.
Started as a specialty chemicals manufacturer, Resinova Chemie has evolved into a manufacturer of adhesives and sealants, construction chemicals and industrial maintenance products. For the 12 months ended on September 30, 2014, Resinova generated Rs 218 crore revenues.
Its products include bondcrete (water thinnable sealer), bondgrip, bondgum, bondinsul, bondtite, bondtite artificial jewellery, bondtite fast and clear, bondtite gel, bondtite handicraft, bondtite super strength, bondtite uniweld, bondtite white paste and bondtite wood. It has a supply chain network of 1,200 channel partners, serviced by its 11 offices across the country.
Founded in 1999, Astral Poly Technik manufactures and markets chlorinated polyvinyl, chloride piping and plumbing systems for hot and cold water, industrial and pressure systems applications.
Astral’s shares last traded at Rs 428.15, down 0.64 per cent on BSE in strong Mumbai market on Wednesday. The stock market is closed for trading on Thursday.