India: In a meeting held recently, the boards of directors of the company approved the merger that is estimated to help the Indo Amines Company increase its revenue as well as profit. They also want to utilise their approvals of agro surfactants and emulsifiers with various multinational companies present in India to exports these products. This merger will increase the sales of the company and take the Indian chemical industry towards a more positive growth.
The merger of Indo Amines with its subsidiaries Key Organics and Core Chemicals will also support the company in achieving operational synergies, assets and capabilities leverage and lowering the cost of capital. The shareholders from the Core Chemicals Company will be issued 50 shares each of Rs.10 which will be of Indo Amines for every share held in it. No issues regarding allotment of equity shares to the shareholders of Key Organics will be faced by the company since the company is a wholly owned subsidiary of Indo Amines. After the completion of the amalgamation, the shareholdings for the promoters are going to reduce from 74.26 per cent to 70.06 per cent according to the shareholding pattern post amalgamation.
According to BlueWeave Consulting, Indo Amines is a chemical company which produces specialty chemicals, fatty amines, fatty acids, etc. the chemical industry is augmenting at a rapid pace, a good part of which is comprised of specialty chemicals. This amalgamation between Indo Amines with its subsidiaries Key Organics and Core Chemicals will strengthen their position; significantly increase their product offerings and platform of sales to have better access to a larger client base, along with pooling of resources. This merger will act as a strong platform from which the company can embark to the next phase of growth while unlocking significant value for their shareholders. One strong entity and organisation instead of small subsidiaries along with good management will increase the long term values for the company and all the shareholders. This will definitely promulgate the chemical industry in India.