On May 6, 2024, Gujarat Fluorochemicals Limited (GFL), a leading Indian manufacturer of fluorochemicals and speciality chemicals, announced a strategic move to acquire the remaining 0.60% stake in IGREL Mahidad Limited (IGREL). This acquisition will solidify IGREL’s position as a wholly-owned subsidiary of GFL.
By acquiring the outstanding shares, GFL will gain complete ownership and control of IGREL. This enhanced control streamlines decision-making processes and facilitates a more unified strategic direction for both entities. This move also simplifies GFL’s corporate structure, fostering greater operational efficiency.
Full ownership of IGREL presents GFL with the opportunity to unlock significant synergies between the two companies. GFL can leverage its expertise and resources to optimise IGREL’s operations, potentially leading to improved efficiencies and cost savings. Furthermore, this acquisition allows GFL to explore new growth opportunities by strategically integrating IGREL’s business activities with its own.
According to the filing on the exchange, the acquisition is expected to be completed by May 31, 2024. The exact cash consideration to be paid by GFL will be determined based on a fair market valuation of the remaining stake in IGREL.
The acquisition of the remaining stake in IGREL Mahidad signifies a strategic step forward for Gujarat Fluorochemicals Limited. By achieving complete ownership, GFL streamlines its corporate structure, unlocks potential synergies, and positions itself for future growth through the strategic integration of IGREL’s business. This move strengthens GFL’s position within the Indian fluorochemical and speciality chemicals industry.
Incorporated in 2018, Gujarat Fluorochemicals Limited, earlier known as Inox Fluorochemicals Limited, is one of the leading producers of Fluoro-polymers, Fluoro-specialities, Chemicals and Refrigerants in India. During Q4 FY2024, GFL recorded 14% QoQ growth in revenue from operations, and EBITDA was 21% QoQ. During the quarter, GFCL EV, a 100% subsidiary of GFL, announced the commissioning of the initial phase of its integrated battery materials manufacturing facility.
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.
Published on: May 7, 2024, 1:40 PM IST
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