Mangalore Refinery and Petrochemicals Ltd (MRPL) has acquired 1,34,80,000 equity shares of Mangalore SEZ Ltd (MSEZ) from IL&FS. After this acquisition, equity stake of MRPL shall increase from 0.96 per cent to 27.92 per cent in MSEZ.

The company informed stock exchanges that the board of directors of MRPL approved this at its meeting held on Friday.

It said IL&FS has offered its equity stake in MSEZ to ONGC/MRPL as a right to first refusal. ONGC (Oil and Natural Gas Corporation) is a promoter for MRPL and MSEZ.

On the price at which the shares are acquired, the company said 1,34,80,000 equity shares were acquired at ₹35 a share. The company has acquired the stake for a cash consideration of ₹47.18 crore.

On the percentage of shareholding, it said 26.96 per cent of the shares were acquired. That is 1,34,80,000 equity shares of ₹10 each.

The company mentioned one year as the indicative time period for completion of the acquisition.

MSEZ -- a joint venture of ONGC (26 per cent), IL&FS (50 per cent), Karnataka Industrial Area Development Board (23 per cent), MRPL (0.96 per cent), and Kanara Chamber of Commerce and Industry (0.04 per cent) – is a special purpose vehicle incorporated on February 24 2006.

Spread over an area of 1,607 acres, MSEZ is operational from 2014 with around 85 per cent area leased out. The zone has 10 operational units such as MRPL (aromatic complex), Syngene, ISPRL, Catsynth Speciality Chemicals and other food processing units.

The company said MSEZ is one of India’s successful SEZs with investments exceeding $2 billion so far and exports of over $3.2 billion worth of goods from its units.

Total turnover of MSEZ was at ₹344.64 crore during 2022-23, ₹198.99 crore in 2021-22, and ₹169.48 crore in 2020-21.