M&A Magazine

Demergers , which are expected to unlock shareholder value, have not worked in favour of shareholders of Omkar Speciality Chemicals and Lasa Supergenerics . Omkar Speciality Chemicals Limited (Omkar Chemical) incorporated in 2005, is in the business of speciality chemicals & active pharmaceutical ingredient (API). The business was carried out by Omkar Chemical on its own and through its 4 subsidiary companies. API business was carried out in the company’s subsidiary Lasa Laboratory Pvt Ltd ( Lasa Lab ). In 2015, director of Omkar Chemical has approved the scheme of arrangement under which all subsidiary companies will be merged into Omkar Chemical and demerger of its API business to “Lasa Super generic Ltd” (a company incorporated by Omkar chemical for the purpose of demerger of API division) with the appointed date being 01/04/2015. The scheme was approved by NCLT in April 2017. Post demerger, Omkar chemical and Lasa Supergenre business collapsed and both the company faci...

Raymond Group , having an interest in Textile & Apparels, Real Estate, FMCG and Engineering products has decided to streamline its corporate structure. In pursuant to this, the company will separate its lifestyle business division to separate company & later to list it separately. Raymond Limited ( Raymond ) is India's largest integrated worsted suiting manufacturer that offers end-to-end solutions for fabrics and garmenting. Over the years, Raymond has been synonymous with quality, innovation and market leadership. It has some of the leading brands within its portfolio - Raymond Ready to Wear, Park Avenue, ColorPlus, Parx, Raymond Made to Measure amongst others. Raymond has one of the largest exclusive retail networks in the country with over 1500 stores across 601 towns. As a part of the diversified Group, it also has business interests in men's accessories, personal grooming & toiletries, prophylactics, engineering and auto components across national and int...

The board of Infibeam Avenues approved demerger of E-commerce business of NSI Infinium and its Theme park & Software business into Suvidhaa and DRC Systems respectively, which will be listed at a later date. The demerger has been done by the board as a part of Infibeam’s broader business restructuring plan. These strategies will pave the way for the management of each firm to chalk out growth strategies. Infibeam Avenues Limited (IAL ) is in the business of digital payments, E-commerce services, software business, e-commerce technology platforms and provides a comprehensive suite of web services spanning digital payments solutions, data centre infrastructure, software platforms, etc. The equity shares of the company are listed on BSE and NSE. Suvidhaa Infoserve Private Limited (SIPL) is a private limited company. However, for the conversion into public company resolution has been passed on August 27, 2019. SIPL engaged in the business of provide facility to make payme...

The Board of Directors of Fairchem Speciality Limited announced the separation of its “Oleo Chemical & Nutraceutical Business” through a demerger . To take the company to the next level, the famous Fairfax group acquired a significant stake in the company & thereafter immediately the company acquired “ Aroma Business ” from Privi Organics Limited . As a result of the acquisition by Fairfax & demerger, the erstwhile promoters stake got changed from 62% to 4%.  Interestingly, only after less than three years, the promoters have decided to part away. What made them think of separation of the business? What will be the impact on minority shareholder and the largest promoter shareholder Fairfax Group? Formation of FAIRCHEM SPECIALTY LTD. Till 2015-16, the company was operated as Adi Fairchem Limited (AFL) having a business of speciality oleo chemical & nutraceuticals. In late 2015, Canada based Fairfax Group (FIH) entered into a Share Purchase Agreement with...

In order to streamline the group's business and maximise shareholder value, the country's largest private sector healthcare provider, Apollo Hospitals has spinned off its front-end retail pharmacy business into Apollo Pharmacies ( APL ), which in turn will be a wholly-owned subsidiary of Apollo Medicals Pvt Ltd ( AMPL ). Also, Apollo will enter brand licensing agreement with APL to licence the Apollo Pharmacy brand to the frontend stores and online pharmacy operations. The reorganisation, according to the company, will not have a material impact on the financials of Apollo as the backend business related to the standalone pharmacies will continue to be held by Apollo. The reorganisation enables Apollo to be compliant with the norms of foreign direct investment (FDI) limits and further grow the pharmacy retail business. At present, retail pharmacy business comes under the category of multi-brand retail, where FDI is allowed up to 51%. The organised pharmacy retail accoun...

Mumbai-based Ganesh Benzoplast has decided to restructure and reorganise the company with the demerger of the chemical business.  It has also segregated both the divisions -- Chemical and LST business – by demerger. As both the divisions have totally different synergies, the demerger will ensure greater focus to the operation of each of the divisions and enhance profitability and generate maximum shareholder value. Ganesh Benzoplast Ltd (GBL) is a public limited company, having two divisions, one being Liquidity storage Terminal division (LST) which is related to providing conditioned storage facilities (Liquidity storage Terminal division – LST) for bulk liquids and chemicals at JNPT, Cochin and Goa, In LST division, the Company has a combined storage capacity of more than 3,00,000 KL, for storage of all types of Liquid Products.  And  Chemical division which is related to manufacturing, export and import of premium range of speciality chemical, food preservati...

Skipper Limited (Skipper), incorporated in 1981, is the largest manufacturer of Transmission & Distribution Structures in India with engineering and manufacturing facilities in Eastern India. The company takes advantage of the available power and steel supply, the cost-effective labour, and proximity to ports. It has four state-of-the-art manufacturing plants in this region, two in Jangalpur; one in Uluberia near Kolkata, West Bengal; and one in Palasbari, near Guwahati). The Guwahati plant commenced operations in March 2017 and aims to tap the growing demand for T&D products in the North East region. The total installed capacity of Engineering products now stands at 265,000 MT. The company’s Polymer Product Segment has a manufacturing capacity of 51,000 MTPA. Over 70% of the gross block is less than six years old, and Skipper is one of the very few companies in India to be assured of CPVC for the manufacture of state-of-the-art pipes. Skipper is the only Company in the sec...

Alembic Ltd (Alembic), incorporated in 1907, is part of Alembic group and it is engaged in the business of manufacturing and trading active pharmaceutical ingredients (API) and Real Estate Developments. It also has investment in Alembic Pharmaceuticals Limited (APL). Shreno Limited (Shreno), incorporated in 1944, is engaged in the business of manufacturing and trading of glassware items, machinery and equipments (engineering) required for various industries, making investments and real estate developments. Nirayu Pvt. Ltd. (Nirayu), incorporated in 1971, is currently holding investment in shares and securities of various entities. Current Shareholding of the companies Please Note: 1% OCPS of Shreno limited of book value Rs. 8.71 crores were converted in equity shares by alembic Limited in FY 2018 Therefore the final total investment by Alembic in equity is Rs. 35.13 crores. Alembic acquired 55% stake in Alembic City Limited resulting into WOS of the company ...