Goa-based Zuari Agro Chemicals Ltd is raising up to Rs 400 crore ($64.8 million) through a qualified institutional placement (QIP), as per a stock market disclosure. The board approved the plan on January 22.
Zuari plans to use the money for substantial revamp of existing manufacturing capacities and towards strategic investment or acquisitions.
Notably, Zuari and its promoter Adventz Group are locked in a battle with Deepak Fertilisers for control of UB Group firm Mangalore Chemicals and Fertilizers Ltd (MCFL).
Zuari Agro owns 16.46 per cent stake in MCFL and last month made a revised open offer to hike its holding in the company after its previous attempt failed to garner many shares. It is now listed as a co-promoter of MCFL with UB Group owning another 22 per cent stake.
Deepak Fertilisers owns 29 per cent, having offloaded over 2 per cent last month after becoming the single-largest shareholder of the firm post its hostile takeover attempt with an aggressive open offer.
Founded in 1967, Zuari is one of the leading fertiliser makers in India. The company produces complex fertilisers of various grades along with seeds, pesticides and micro nutrients.
Zuari has a manufacturing facility at Goa, with four plants which produces urea, DAP and NPK based fertilisers. It markets its products under the Jai Kisaan brand.
(Edited by Joby Puthuparampil Johnson)