Mumbai: Dorf-Ketal Chemicals India Pvt. Ltd has emerged as the front runner for speciality chemicals maker Aquapharm Chemicals Pvt. Ltd, two people aware of the matter said.
Dorf-Ketal is planning to sell five-year, non-convertible debentures at 8.5-9% interest to raise ₹3,800 crore for the transaction, one of the two people cited above said on the condition of anonymity. Aquapharm’s owners are looking to raise ₹4,000 crore- ₹4,400 crore from the stake sale, the two people said.
Others in the fray for the Pune-based company include Tata Chemicals Ltd and RP-Sanjiv Goenka Group company PCBL Ltd. Mint first reported on 2 April 2023 that Aquapharm’s owners had hired a US-based investment bank to explore a full stake sale.
Dorf-Ketal Group, which has struck multiple acquisitions in recent times globally, has sales of over $1 billion, the second person said. On 6 January, it said that a subsidiary had acquired Canada’s Fluid Energy Group’s global modified and synthetic acid business, which had a turnover of ₹480 crore. In October 2022, Dorf-Ketal acquired Clariant’s North American land oil business. In April 2022, it acquired India-based Khyati Chemicals.
Dorf-Ketal’s financial risk profile is supported by healthy cash accrual and moderate capital expenditure plans after FY23, a Crisil report dated 8 March said. “While the overall debt may increase to ₹1,350 crore as on March 31, 2023, gearing may moderate to ~1 time due to debt addition to funding the recent acquisitions. The group plans to focus on integrating and ramping up the acquired businesses over the next 1-2 years,” the report added.
Tata Chemicals declined to comment. Spokespeople for Aquapharm Chemicals, Dorf-Ketal, and the RP-Sanjiv Goenka group did not respond to emailed requests for comment.
The Mangwani family, led V.K. Mangwani, owns around 50% in Aquapharm. The rest is held by Sanjay Desai-led Desai family, owners of the pickle brand Mother’s Recipe.
Pune-based Aquapharm manufactures speciality water treatment chemicals, such as phosphonates, polymers, biocides and pharmaceutical intermediaries, used by various industries, including detergents, paper, textile, pharmaceuticals, personal care, water treatment and leather manufacturers. It has manufacturing facilities in Pirangut and Mahad in Maharashtra, with an installed capacity of 70,000 tonnes.
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Updated: 17 Oct 2023, 12:13 AM IST