Aarti Industries Demerger Cost of Acquisition: Aarti Industries, a leading Indian chemical company, is set to demerge its agrochemicals business into a separate entity. This move is expected to have a positive impact on the company’s stock price.
In August of last year, Aarti Industries announced that they would be separating their speciality chemicals business and their pharma business. The plan is to have the pharma business operate under Aarti Pharmalabs Limited (APL), and the original speciality chemicals business will continue under Aarti Industries Limited (AIL). The record date for the demerger is set as October 20, 2022.
Impact of Aarti Industries’ Demerger: How the demerger in Aarti Industries will impact its stock prices.: Aarti Industries has announced that it will be fixing a record date for the proposed demerger of its chemical business. This move comes as part of the company’s plans to focus on its core businesses and create value for shareholders. The proposed demerger is expected to be completed within the next few months, and Aarti Industries shareholders will be entitled to one share in the new chemical company for every ten shares they hold in the parent company. investors believe that this move will unlock value for shareholders and make the company more attractive to potential investors.
Aarti Industries shares have been a standout performer on the Dalal Street stock exchange, doubling shareholders’ money in the last two years. In the post-Covid rebound, this chemical stock has delivered a whopping 275% return to its shareholders over the last five years.
The demerger will help Aarti Industries focus on its core chemical business, and the new agrochemicals company will be better positioned to compete in the growing Indian agrochemicals market. The move is also expected to improve the company’s financial performance and shareholder returns.
