Asian Paints Completes Acquisition of 24.3% Stake in SCIB Chemicals

Asian Paints International Private Limited (APIPL), a subsidiary based in Singapore, has successfully concluded the acquisition of a 24.3% stake in SCIB Chemicals S.A.E., a leading chemical company in Egypt.

Details of the Acquisition

APIPL finalized the acquisition on May 26, 2024, purchasing the stake from minority shareholders of SCIB Chemicals for approximately USD 4.13 million (Rs. 34 crore). This transaction is still subject to regulatory approvals and the completion of necessary formalities in accordance with Egyptian laws.By increasing its ownership to 85.6% in SCIB Chemicals, Asian Paints has boosted its operational control and direction within the region. =

Stock Performance

Asian Paints Ltd. has demonstrated notable activity in the market. The company’s share price rose by 1.52% from its previous close of Rs.2,880.85, reaching a last traded price of Rs. 2,924.50. Over a three-year period, the stock delivered a return of -2.13%, contrasting with the Nifty 100’s return of 52.57%. Within this sector, Asian Paints holds the top market cap rank with a capitalization of Rs.2,78,158 crore.

Financial Overview

On May 9, 2024, Asian Paints declared a final dividend of Rs. 28.15 per share, translating to a 2815% dividend on the face value of Rs. 1 per share. The ex-dividend date was June 11, 2024.

For Q4FY24, Asian Paints reported a consolidated total income of Rs. 8,917.87 crore and a loss of Rs. 1,256.72 crore and for FY24, the company’s total income and profit were Rs. 36,182.69 crore and Rs. 5,460.23 crore, respectively. The Rs.34 crore investment is expected to yield substantial returns through synergies, operational efficiencies, and a good  market penetration in Egypt and neighboring regions.

Conclusion: With the completion of the SCIB Chemicals acquisition, Asian Paints strengthens its position as a key player in the global chemicals industry. The increased stake in SCIB empowers Asian Paints to leverage synergies and drive innovation, paving the way for growth and profitability in international markets.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.