BASF Share Price Snaps Four-Day Fall After It Approves Demerger Of Agri Solutions Business

BASF's share price snapped its four-day fall and surged on Friday, a day after the company announced the demerger of its agricultural solutions business into a separate legal entity.

"This will enable operational flexibility, leverage differentiated steering and create value," an exchange filing by the company said. "The company’s agricultural solutions business has generated sales of Rs 20,064.6 million (or Rs 2,006 crore), representing 14.57% of the total revenues of the company for the financial year ended March 31, 2024."

This comes after the global BASF SE had said last year that it will follow a differentiated steering approach for its global agricultural solutions business, in line with the principles of empowerment, differentiation and simplification.

On Sept. 26, the company had said that BASF SE will globally complete the legal and Enterprise Resource Planning separation of the agricultural solution business by 2027. As a next step, BASF SE, Germany is also targeting readiness for a potential initial public offering of its global agricultural solutions business and is also evaluating the option of listing of a minority share in the mid-term.

Shares of the company rose as much as 7.6% to Rs 5,875 apiece, the highest level since Dec. 2. They pared gains to trade 7.2% higher at Rs 5,854 apiece, as of 9:47 a.m., compared to a 0.3% advance in the NSE Nifty 50.

The stock has risen 89.6% on a year-to-date basis. Total traded volume so far in the day stood at 3.22 times its 30-day average. The relative strength index was at 43.07.

The one analyst tracking the company has a 'buy' rating on the stock, its price target implies an upside of 0.3%.