Chembond Chemicals surges after acquiring stake in subsidiary

Chembond Chemicals jumped 7.52% to Rs 221.80 at 9:25 IST on BSE after the company said it has entered into an agreement to acquire the equity shares of Chembond Solenis Water Technologies.

The announcement was made after market hours yesterday, 27 April 2017.

Meanwhile, the S&P BSE Sensex was down 112.63 points, or 0.38% to 29,917.11. The S&P BSE Small-Cap index was up 16.73 points, or 0.11% to 15,296.22.

On the BSE, 8,904 shares were traded on the counter so far as against the average daily volumes of 6,874 shares in the past one quarter. The stock had hit a high of Rs 229.90 and a low of Rs 210 so far during the day.

Chembond Chemicals said that pursuant to the approval of the board of directors at a meeting held on 27 April, 2017, the company has entered into an agreement to acquire the equity shares of Chembond Solenis Water Technologies (CSWTL), a subsidiary company from Solenis Netherlands B.V.

CSWTL had turnover of Rs 93.19 crore for the year ended 31 March 2016. CSWTL is in the manufacturing of chemicals for water treatment technologies. CSWTL has presence only in India.

Indicative time period for completion of the acquisition is on or before 3 May 2017. The cost of acquisition is $7.35 million. The company will acquire 45% stake in CSWTL.

After the acquisition, the subsidiary company shall become a wholly owned subsidiary of the company.

Chembond Chemicals is engaged in the manufacturing a diverse range of specialty chemicals like water treatment, polymers, construction chemicals, high performance coatings, animal nutrition's and industrial biotech products.

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