Rossari Biotech jumped 4.99% to Rs 1,326.90 after the company announced that its board of directors has approved the acquisition of Unitop Chemicals for a consideration of Rs 421 crore.
As per the agreement and subject to customary closing conditions, Rossari will be acquiring 100% of the equity capital of Unitop Chemicals. The speciality chemicals manufacturer will acquire 65% of the equity share capital upon closure of the transaction, and the balance 35% over the next two years.
The total consideration for the acquisition of 100% equity stake is Rs 421 crore. Rossari plans to fund the investment through cash on balance sheet and doesn t intend to raise any debt for this acquisition.
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Rossari Biotech reported a 47.1% jump in consolidated net profit to Rs 22.2 crore on a 36.8% rise in net sales to Rs 218.22 crore in Q4 FY21 over Q4 FY20.On a consolidated basis, profit before tax jumped 46.3% to Rs 29.91 crore in Q4 FY21 as against Rs 20.44 crore registered in Q4 FY20.
During the quarter, the company successfully commissioned all phases of its greenfield manufacturing facility at Dahej, Gujarat. The unit has a total installed capacity 132,500 MTPA, enhancing the total capacity of Rossari by 2.1 times to 252,500 MTPA. The company expects to sustainably ramp-up utilization levels at the Dahej unit over the next 3-4 years.