Sudarshan Chemical Soars After Acquiring Heubach’s Global Pigment Division

On October 11, 2024, Sudarshan Chemical Industries witnessed a remarkable surge in their share price, reaching the 20 percent upper circuit, after announcing their acquisition of Heubach‘s global pigment business. This major transaction, valued at ₹1,180 crore, has evidently bolstered investor confidence, pushing shares to a new 52-week high of ₹1,217.50 per share on the National Stock Exchange (NSE).

Heubach, a significant player within the specialty chemicals sector, specializes in organic pigments, inorganic pigments, dyes, dispersions, and anti-corrosion pigments. The company’s prominence was further solidified when it became the second-largest pigment producer globally after acquiring Clariant’s Business Unit Pigments in 2022.

Following the announcement, Heubach Colorants India also saw a spike to its intraday high of ₹733.90 per share on the NSE, marking nearly a 10 percent gain. However, subsequent profit-taking brought the trading price down to ₹675.90 per share at approximately 3:15 PM.

The acquisition is set to create a formidable entity with an extensive pigment portfolio and a significant market presence across major regions such as Europe and the Americas. The deal is expected to conclude within three to four months, significantly enhancing Sudarshan Chemical’s product offerings and allowing for greater customer penetration. The company will also benefit from a diversified asset footprint spanning 19 global sites.

This strategic expansion positions Sudarshan Chemical Industries as a potent force in the specialty chemicals industry, granting it access to broader markets and an enriched customer base.

Despite the excitement surrounding the acquisition, investors and stakeholders are advised to consult financial experts for guidance, as expressed views and tips remain independent of Moneycontrol and its management. The platform encourages users to verify investments with certified advisors prior to making decisions.