Chemical stock falls 5% after major restructuring of controlling power in company

Synopsis: Indo Borax & Chemicals plunged sharply following a change in control that resulted in a compulsory open offer following its acquisition of 50.8% shareholding in the company.

The shares of this company, engaged in the business of manufacturing Boron and Lithium products, are in focus after its new acquirer made an open offer to the public. In this article, we will dive more into the highlights of this transaction.

With a market capitalisation of Rs 878 crore, the shares of Indo Borax & Chemicals Ltd. reached a day’s low of Rs 270 per share, down over 5 percent from its previous day’s closing price of Rs 284.85 per share. Over the past five years, the stock has delivered a robust return of 557 percent, outperforming NIFTY 50’s return of 89 percent.

About the Transaction

Indo​‍​‌‍​‍‌​‍​‌‍​‍‌ Borax & Chemicals Ltd., through a stock exchange filing, announced that its buyers have made a mandatory open offer consequent to the change in control. Zenrock Chemicals Pvt Ltd, along with financial investors India Special Assets Fund III, ISAF III Onshore Fund, and Special Situation India Fund, has made the open offer as per SEBI takeover regulations.

As per the deal announced earlier, the acquirer group has entered into a share purchase agreement to acquire 50.8 percent (1.63 crore shares) of Indo Borax & Chemicals from the existing promoter group at Rs 256.30 per share. This change in control has triggered a mandatory open offer to public shareholders for up to 26 percent (83.43 lakh shares) of the company’s equity at the same price, payable in cash. The final shareholding of the acquirer will depend on the level of acceptance of the open offer.

After the transaction is closed, Zenrock Chemicals will be the new promoter holding single control over Indo Borax; the current promoters will leave the company totally, and they will be changed from the promoter group to the non-promoter category. The acquirer has mentioned that there is no plan for delisting the company, and the necessary measures will be taken to ensure minimum public shareholding as per listing ​‍​‌‍​‍‌​‍​‌‍​‍‌regulations.

Financial and Other Highlights 

Indo Borax has reported an operating revenue of Rs 58 crore in Q2 FY26, representing a 53 percent growth compared to Rs 38 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 7.4 percent from Rs 54 crore.

Regarding its profitability, it reported a net profit of Rs 16 crore in Q2 FY26, a sharp growth of 78 percent as compared to Rs 9 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 60 percent from Rs 10 crore. 

Established​‍​‌‍​‍‌​‍​‌‍​‍‌ in 1980, Indo Borax & Chemicals Limited is a market leader in boron products in India and is widely recognized as the industry benchmark for boric acid. The company is profitable without any bank loans, holds the largest market share in India, and has been recognised by Forbes Asia Pacific among the Top 200 Under a Billion Dollar Companies.

Indo Borax runs a technologically advanced manufacturing facility in Pithampur, Madhya Pradesh, where it produces boric acid, borax, and DOT by employing the technology developed in-house. It is the only Indian company to have the FDA approval for pharmaceutical-grade boric acid and is continuously emphasising the production of high-quality, value-added boron ​‍​‌‍​‍‌​‍​‌‍​‍‌products.

Written by Satyajeet Mukherjee

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