Coromandel International hits 52-week high; EID Parry up 4%

Coromandel International hit a 52-week high of Rs 559, up 4%, while EID Parry (India) was up 4% at Rs 365 on the BSE in early morning trade.

Coromandel International hit a 52-week high of Rs 559, up 4% on the BSE in intra-day deal, after the company said it has signed an agreement to acquire the bio-pesticides business of E.I.D. Parry (India) together with its wholly-owned subsidiary Parry America, Inc, US, through a slump sale. The stock of EID Parry (India) was  up 4% at 365 on the BSE in early morning trade. Both the companies are part of the Murugappa Group.

The "consideration for the transaction is Rs 338 crore (subject to changes in working capital as on the closing date) which includes transfer of bio-pesticides business of EID Parry together with its stake in the wholly owned subsidiary, Parry America, Inc", the statement said.

The bio-pesticides business is engaged in the manufacture and marketing of neem-based Azadirachtin technical and formulations, plant extract-based bio-stimulants, micronutrients, microbials, and so on, and has brands that are well established in India and globally.

"The transaction is part of the strategic plan of the company to consolidate and focus on its core business in food and nutraceuticals space. Also, it would help the company to keep its gearing at a lower level to handle the sugar cyclical movements", Murugappa Group, Chairman, A Vellayan said.

The bio-pesticides business would gather growth momentum in the hands of Coromandel through their strong position in crop protection business in India, he said.

At 12:36 PM; Coromandel International (up 2.8% at Rs 552) and EID Parry (India) (up 2.2% at Rs 359) were up more than 2% against 0.07% rise in the S&P BSE Sensex.