Approval for demerger of Agricultural Solutions business of the Company
Awaiting price reaction for this filing.
BASF India's Board has approved a Scheme of Arrangement to demerge its Agricultural Solutions Business (crop protection chemicals, seeds, digital agri tools) into BASF Agricultural Solutions India Ltd, a wholly-owned subsidiary acquired in April 2025. The Agricultural Solutions segment had a turnover of Rs. 20,647.3 million in FY25, contributing 13.6% of BASF India's total revenue. Shareholders 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 will be 73.33% and public holding 26.67%, and the new entity will seek listing on BSE and NSE. The move is part of BASF SE's global strategy to separate its agricultural solutions business and give it independent management focus.
Existing BASF India shareholders will get free shares in a new listed agro-chemical company, effectively unlocking value of the agricultural segment. The remaining BASF India will become a more focused chemicals/materials company. Short-term stock reaction may be neutral-to-positive as the demerger is structured to be tax-neutral and ratio is 1:1, but it depends on market valuation of both entities post-listing.