The investment is proposed to be made by acquiring the equity shares of PLUSS from the existing shareholders, including promoters as well as subscribing to additional equity capital in PLUSS.
"CUMI has today, i.e., 26th August 2021, entered into a Shareholders Subscription Agreement with PLUSS and its existing promoters as well as share purchase agreements with its existing shareholders, including Tata Capital Innovations Fund, a Venture Capital Fund of Tata Capital, a financial investor in the Company. CUMI will hold about 72 per cent stake, post enhances capital of PLUSS," the company said in a filing.
Commenting on the rationale behind the acquisition, CUMI, part of the Murugappa Group, said being a material science-oriented company, PCM will provide opportunities in emerging areas of material science with applications in energy storage and conservation in life sciences, health care, food, agriculture, buildings, refrigeration equipment and HVAC.
PLUSS is involved in the fields of Phase Change Materials (PCM) for thermal energy storage and speciality polymeric additives for polymer recycling and enhancing mechanical properties. PCMs are substances that absorb or release energy during phase transition, from solid to liquid and vice versa. PLUSS plays a key role in the Cold Chain logistics of Sputnik V Covid vaccines. The company has a presence in India and Netherlands.
In the past one week, the stock has outperformed the market by surging 15 per cent, as compared to a 1.2 per cent rise in the S&P BSE Sensex. At 11:34 am, it was up 4 per cent at Rs 791, against a 0.23 per cent gain in the benchmark index. A combined around 195,000 equity shares had changed hands on the counter on the NSE and BSE at the time of writing this report.
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