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In an exchange filing, Indigo Paints said, “the company has entered into a share purchase and share subscription agreement (SPSS) and a shareholders agreement (SHA) on 3 April 2023 with Apple Chemie India (ACIPL) to acquire 51% equity shares in ACIPL.”
ACIPL is engaged in the manufacture and sale of construction chemicals and water proofing products, having a presence in India and other countries. It recorded a turnover of Rs 31.81 crore in the financial year ended 31 March 2022 and is expected to clock over Rs 41 crore in FY23.
With this acquisition, ACIPL will become a subsidiary of Indigo Paints, enabling the company in expanding its product portfolio in the space of construction and water proofing products.
The company bought 44,924 equity shares at Rs 6,529 of ACIPL and it also has an option to acquire additional stake in Apple Chemie at the end of three years.
With this partnership, Indigo Paints will be entering into the adjacent areas of construction chemicals and waterproofing space. The size of the target market is estimated to be greater than Rs 15,000 crore and is expected to grow in double digits. ACIPL will continue to lead the company and expand the business pan India in the B2B segment.
Hemant Jalan, CMD of Indigo Paints commented, “This partnership will enable Indigo Paints to widen its product offerings. Indigo Paints will soon be launching a full range of waterproofing and construction chemicals targeting the retail consumers.”
Indigo Paints offers a wide range of interior & exterior wall paint colours, enamels & wood coatings for homes & offices.
The company reported 8.06% rise in net profit to Rs 26.26 crore on a 5.95% increase in net revenue from operations to Rs 281.27 crore in Q3 FY23 over Q3 FY22.
The scrip jumped 5.28% to end at Rs 1,062.50 on Monday, 3 April 2023.
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