Approval for demerger for Company''s Agricultural Solutions business
Awaiting price reaction for this filing.
BASF India's Board has approved a Scheme of Arrangement to spin off its Agricultural Solutions business into BASF Agricultural Solutions India Ltd (currently a wholly-owned subsidiary), which will then seek listing on BSE and NSE. The Agricultural Solutions segment recorded a turnover of Rs. 20,647.3 million in FY25, contributing about 13.6% of the company's total turnover. Under the scheme, shareholders of BASF India will receive 1 equity share of the resulting company (face value Rs. 10) for every 1 share held in BASF India (face value Rs. 10), with no cash consideration. Post-demerger, promoter holding in the new entity is expected to drop from 100% to about 73.33%, with the balance 26.67% going to public shareholders. The move is part of parent BASF SE's global strategy to give the agrochemicals business sharper strategic and operational independence. The scheme still needs approvals from SEBI, BSE, NSE, NCLT, shareholders and creditors before it can take effect.
Existing BASF India shareholders will automatically get shares in the new listed agricultural solutions entity, giving them separate exposure to the agrochemicals business. The demerger is aimed at unlocking value and allowing focused capital allocation for each entity, but the stock could see short-term volatility until the share entitlement ratio is fully priced in by the market.