India Glycols opened status quo at Rs.533.55 and even rose up to Rs.536.30 but from there, it fell almost 9.5% to hit an intraday low at Rs.484.25. It now figures among the top five losers on the BSE currently.
The company announced that it has entered into a JV with Switzerland-based Clariant International.
It is coming in as a 51% partner wherein, India Glycols will transfer its renewable bio-ethylene oxide derivative products business to the joint venture, called IGL Green Chemicals.
The unit will include a multi-purpose production facility in Uttarakhand.
Clariant will pay Rs 588 crore for the deal. There will be a lock-in of seven years for both Clariant and India Glycols and there is a non-compete agreement.
The market is not too happy with this development as the unit being sold to Clariant accounted for around 13% of the total revenue and over 26% of the total networth of India Glycols at end of FY20.