BASF India declines on plans to divest its textiles chemicals business

BASF India fell 1.5% to Rs 1,284.25 at 14:40 IST on BSE after the company's board of directors approved the proposal to divest textiles chemicals business of the company to Archroma.

The company made the announcement during market hours today, 16 October 2014.

Meanwhile, the BSE Sensex was down 75.21 points, or 0.29%, to 26,274.19.

On BSE, so far 19,191 shares were traded in the counter, compared with an average volume of 18,545 shares in the past one quarter.

The stock hit a high of Rs 1,339.90 and a low of Rs 1,262.55 so far during the day. The stock hit a record high of Rs 1388.05 on 20 September 2014. The stock hit a 52-week low of Rs 536.55 on 15 October 2013.

The stock had outperformed the market over the past one month till 14 October 2014, rising 7.33% compared with 2.63% fall in the Sensex. The scrip had, also outperformed the market in past one quarter, jumping 57.03% as against Sensex's 5.37% rise.

The mid-cap chemical manufacturing company has an equity capital of Rs 43.29 crore. Face value per share is Rs 10.

The divestiture is subject to such approvals as necessary. There is no impact of material nature on account of the sale of the textile chemicals business of the company and the same will not affect the company's overall growth strategy.

The company had received information from its parent Company BASF SE, Germany about its decision to divest the global textile chemicals business (part of the performance products segment) to Archroma, a portfolio company of SK Capital Partners, a private investment firm, which focuses on the speciality material, chemicals and healthcare sectors. The closing of the transaction will take place in the first quarter of 2015. This decision is in line with BASF's global strategy to actively manage its portfolio and to further sharpen the focus of the performance products segment on the growth driven customer industries, company said in a statement.

BASF India's net profit fell 40.2% to Rs 51.98 crore on 6.5% rise in total income to Rs 1449.32 crore in Q1 June 2014 over Q1 June 2013.

BASF in India manufactures polymers, tanning agents, leather chemicals and auxiliaries, crop protection chemicals, textile chemicals, dispersions and specialty chemicals, performance plastics, automotive and coil coatings, construction chemicals, polystyrene and polyurethane systems. It also markets a wide range of intermediates, catalysts and other chemicals for life sciences, chemical and allied industries in the country.

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