NACL Industries Stock Down 4% After Coromandel's Acquisition, Open Offer

NACL Industries Ltd.'s stock fell by 4% during early trade on Thursday after Coromandel International Ltd. announced the acquisition of a majority stake and it issued an open offer to buy more shares as per regulations.

Coromandel on Wednesday signed a definitive agreement to acquire 53% controlling stake for Rs 820 crore in NACL Industries at Rs 76.7 per share from the current promoter KLR Products Ltd. It made an open offer to the public to acquire up to 26% equity for Rs 76.7 per share aggregating to Rs 402 crore.

The Murugappa Group company said the transaction will be completed within a few months, and this will help in positioning Coromandel as one of the leading players in the Indian crop protection industry.

NACL Industries operates technical and formulation plants in Andhra Pradesh, besides having centralised R&D facility near Hyderabad.

NACL Industries share price tanked 4.1% intraday to Rs 76.31 apiece. The scrip was trading 2.5% lower by 10:45 a.m. The benchmark NSE Nifty 50 was up 0.08%.

The stock has risen 35% in the last 12 months and 16% on a year-to-date basis. The total traded volume so far in the day stood at nine times its 30-day average. The relative strength index was at 65.

Meanwhile, shares of Coromandel International were trading 1.4% higher at Rs 1,786.65 apiece. Intraday, it gained as much as 2.45%.