Jayant Agro to sell 40% stake in marketing co

Jayant Agro Organics, one of the largest producers of castor-based specialty chemicals, has entered into an agreement with Japan-based Itoh Oil Chemicals Co to sell 40 per cent stake in Ihsedu Itoh Green Chemicals Marketing, a subsidiary of Jayant Agro Organics.

Jayant Agro recently acquired the entire stake holding of Ihsedu Specialty Chemicals (ISCPL) by acquiring the 24 per cent paid-up share capital held by Mitsui Group. Jayant Agro already holds 76 per cent of ISCPL.

With this deal ISCPL has become the wholly-owned subsidiary of Jayant Agro. The board of Jayant Agro, on Monday, decided to appoint a Committee of Directors to consider feasibility for amalgamation of its wholly-owned subsidiary ISCPL with itself, said Jayant Agro in a statement. Jayant Agro has recorded 65 per cent increase in sales at Rs 468 crore (Rs 283 crore) in the first quarter of this fiscal, while its net profit rose marginally to Rs 6 crore (Rs 5 crore). The company's shares on BSE were down two per cent at Rs 90 on Monday.