Approval for demerger of Company''s Agricultural Solutions Business
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, which will be separately listed on BSE and NSE. The Agricultural Solutions segment reported turnover of Rs. 20,647.3 million in FY 2024-25, contributing 13.6% of BASF India's total turnover. The share entitlement ratio is 1:1 — one equity share of the resulting company (face value Rs. 10) for every one equity share of BASF India (face value Rs. 10) — with no cash consideration. Post-scheme shareholding of the resulting entity will be 73.33% promoter and 26.67% public (indicative). The transaction is subject to NCLT, SEBI, BSE, NSE, shareholder and creditor approvals, and follows BASF SE's global strategy to legally separate its agrochemical business.
Existing BASF India shareholders will receive shares in a new pure-play agrochemical listed entity in addition to retaining their BASF India shares. The move aims to unlock value and give the agro business strategic and operational independence, but the actual benefit depends on the market reception of the new listing and timely regulatory approvals.