Asian Paints’ Subsidiary APIPL Acquires Stake In SCIB Chemicals, Shares Marginally Up

The purchase is from existing minority shareholders, increasing APIPL's ownership and providing an exit for the minority investors.

On May 28, Asian Paints announced that through its wholly-owned subsidiary Asian Paints International (APIPL) in Singapore has signed a share purchase agreement to acquire 24.3% of SCIB Chemicals S.A.E., Egypt (SCIB). The purchase will allow APIPL to boost its shareholding representation in SCIB while giving the minority shareholders an exit, entails purchasing shares from SCIB's minority shareholders, according to the exchange filing.

APIPL plans to buy 437,352 shares for a total of $4.13 million, or approximately ₹34.42 crore. According to the exchange filing the company aims to complete the acquisition by June 30, 2024. With this acquisition, APIPL will be able to control SCIB’s business that manufactures, sells, and distributes paints and related products. For the fiscal year 2023-2024, SCIB reports revenue of ₹433.95 crore.

Following the announcement, shares of Asian Paints saw a minor uptick of 0.20% trading at ₹2,878 a share on the NSE at 10:30 am.

The leading paint company in India, Asian Paints is among the top ten decorative coatings companies globally. The company manufactures, markets, and distributes paints, coatings, bath fixtures, home decor items, and other related services.

In the fourth quarter of FY24, Asian Paints' consolidated net profit increased 1.3% YoY to ₹1,256.72 crore. In the quarter that ended on March 31, 2024, revenue from operations fell by 0.6% to ₹8,701.46 crore YoY.