The board of directors of Coromandel International Ltd (Coromandel) and its subsidiary Sabero Organics Gujarat Ltd (SOGL) today separately approved the merger of SOGL with Coromandel through a Scheme of Amalgamation, subject to necessary approvals.
The public shareholders of SOGL would be issued Coromandel shares in the ratio of five equity shares of Re 1 each of Coromandel for every eight equity shares of Rs 10 each of SOGL.
Coromandel, along with its wholly-owned subsidiary Parry Chemicals Ltd (PCL), holds 74.90 per cent equity stake in SOGL.
The shares held by Coromandel and PCL in SOGL would be extinguished, according to statements filed by both companies with the stock exchanges.
The shares of Sabero closed slightly lower at Rs 122.90, a loss of Rs 4.25, on the BSE. But shares of Coromandel edged up by Rs 1.15 at the close to Rs 243.95 on the BSE.
Coromandel Intl standalone net up 50%
Coromandel International has reported an almost 50 per cent increase in its standalone net profit for the quarter ended December at Rs 102.08 crore, as against Rs 68.65 crore in the year-ago period on the back of increased sales.
During the period, its net income rose to Rs 2,500 crore, as compared to Rs 2,308 crore in the corresponding period of last fiscal.