will acquire 54 per cent of the global business of Pfaudler International under the announced deal. The Patel family, which is part of the promoter group, will acquire another 26 per cent stake. The offer for sale which triggered the slide was part of the restructuring. The Patel family and Pfaudler Inc are part of the promoter group at GMM Pfaudler.
Analysts believe valuations are likely to be affected by the governance issues surrounding the fall.
The pharmaceutical industry is expected to benefit from reduced dependency on China and other drivers like Indian companies
moving up the value chain. The chemicals segment is also supported by stricter environmental regulations in China which acts as a positive for manufacturing in India.
They have mentioned a combined revenue of around Rs 2,000 crore for the 2020-21 financial year (FY21). The earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be 13 per cent. The consolidated revenue is expected to rise to Rs 2,800 crore and EBITDA margins to 16 per cent by FY24. Synergies could further expand these margins, according to the company.
The head of research at a domestic brokerage said that the outlook for the sector is bright. Price discovery has remained a challenge in smaller companies, which may have played out in GMM Pfaudler. He declined to be named, citing compliance issues.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.