Speciality chemicals company Rossari Biotech said that it has entered into an agreement to acquire Tristar Intermediates Pvt Ltd for Rs 120 crore ($16 million).
Rossari Biotech said in a stock market disclosure that the acquisition will happen in multiple tranches.
As part of the first tranche, it will acquire 76% equity stake of Tristar by September this year and the remaining will be purchased by fiscal ending March 31, 2025.
The acquisition is in line with Rossari Biotech's strategy to establish its position in the manufacturing of specialty chemicals as part of its inorganic growth plan.
Tristar provides an opportunity for synergies in manufacturing and marketing that can be highly value accretive in the long run, it said.
Tristar, which was incorporated on September 1, 1997, is engaged in the manufacture and trade of organic and inorganic chemicals.
It has three manufacturing facilities with a capacity of 15,000 million tonnes per annum (MTPA).
It had recorded a turnover of Rs 110.5 crore in last fiscal 2020-21 as compared with Rs 95.2 crore in the previous financial year.
Last month, Rossari Biotech said it will buy Unitop Chemicals Private for Rs 421 crore ($57.7 million) in an all-cash deal.
Rossari went public in July last year, marking the first IPO since India went into a lockdown in late March to control the Covid-19 pandemic.
Prior to that, Rossari had raised Rs 100 crore in a pre-IPO round by allotting shares to eight institutional investors including private equity and hedge funds.