Navin Fluorine International Limited has informed the Exchange about Acquisition
NAVINFLUOR · price
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Navin Fluorine International's Board has approved the allotment of approximately 19,99,99,997 8% Non-Convertible, Non-Cumulative, Non-Participating, Redeemable Preference Shares (face value ₹10) by its wholly owned subsidiary Navin Fluorine Advanced Sciences Limited (NFASL), aggregating to about ₹200 Crores. NFASL operates in fluorochemicals and reported a turnover of ₹840.94 Crores, profit after tax of ₹49.93 Crores, and net worth of ₹742.64 Crores as of March 31, 2025. The investment is being made through a rights issue on an arm's length basis, with the purpose of repaying external debts of NFASL and reducing debt at the consolidated level. Since NFASL is already 100% owned, this is a capital infusion into the subsidiary rather than a new acquisition, and it is structured as a cash consideration.
This is a positive internal restructuring move that strengthens NFASL's balance sheet and lowers consolidated debt, potentially reducing future interest costs. There is no change in shareholding or dilution for existing shareholders of Navin Fluorine, and the 8% coupon provides NFASL with cheaper capital than external debt.