Sudarshan Chemical Shares Surge on Acquisition Announcement

On October 11, 2024, shares of Sudarshan Chemical Industries experienced a significant price surge, reaching the 20% upper circuit limit. This rise occurred following the company’s announcement regarding the acquisition of Heubach’s global pigment business for a sum of Rs 1,180 crore.

This development caused Sudarshan Chemical’s stock to achieve a new 52-week high, trading at Rs 1,217.50 per share on the National Stock Exchange (NSE). The financial markets responded positively to the news of the acquisition, indicating strong investor confidence.

Heubach, a prominent entity in the speciality chemicals industry, deals extensively in organic and inorganic pigments, dyes, dispersions, and anti-corrosion pigments. Notably, Heubach solidified its position as the second-largest global pigment producer after acquiring Clariant’s Business Unit Pigments in 2022.

Additionally, shares of Heubach Colorants India also witnessed an upswing, climbing to an intraday high of Rs 733.90 per share on the NSE, marking nearly a 10% increase. Despite this initial surge, profit-taking led to a slight decline, with shares trading at Rs 675.90 per share at approximately 3:15 PM.

The acquisition, which is anticipated to conclude within three to four months, is expected to bolster Sudarshan Chemical’s portfolio by enhancing its product offerings and expanding its market access. The combined entity will possess a substantial pigment portfolio, poised to strengthen its presence in critical regions, including Europe and America, across 19 global sites.

Market analysts expect that this strategic acquisition will provide Sudarshan Chemical with deeper customer connections and a more diverse asset footprint within the pigment industry. However, Sudarshan Chemical and independent financial advisors urge investors to consult certified experts before making investment decisions related to these developments.

Moneycontrol, the source of this update, disclaims responsibility for the financial advice given by experts within its stories. It advises its readers to seek advice from certified financial professionals when making investment decisions.