YET ANOTHER RESTRUCTURING TO UNLOCK VALUE OF TAN BUSINESS BY DEEPAK FERTILISERS
M & A Critique|March 2023
"The merger and demerger transaction should simplify the corporate structure and segregate the Crop Nutrition Business and Technical Ammonium Nitrate Business to focus and grow separately"
Anirudha Jain
YET ANOTHER RESTRUCTURING TO UNLOCK VALUE OF TAN BUSINESS BY DEEPAK FERTILISERS

Technical ammonium nitrate (TAN) is an important chemical used in various industries, including mining, construction, and agriculture. Its primary use is as a component in explosives, where it is mixed with other chemicals to create an explosive compound that can be used for mining and construction.

The global TAN market is expected to grow significantly in the coming years due to increased demand from various industries. Factors such as the growing population, increasing construction and mining activities, and rising demand for high-quality fertilizers are expected to drive the demand for TAN.

Recently, Deepak Fertilisers and Petrochemicals Corporation Ltd. announced internal-rejig of its growing Technical Ammonium Nitrate business which shall entails it to house it in a separate wholly owned subsidiary.

Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL) is among the India's leading manufacturers of industrial chemicals and fertilisers. The company is engaged in manufacturing of following businesses:

Industrial Chemicals (IC), through DFPCL

Technical Ammonium Nitrate (TAN), and Crop Nutrition business (CNB) through wholly owned subsidiary; Smartchem Technologies Limited ("STL" or "Demerged Company").

The equity shares of DFPCL are listed on nationwide bourses.

Mahadhan Farm Technologies Private Limited (MFTPL) is engaged in the business of manufacturing of watersoluble fertilisers. MFTPL is a wholly owned subsidiary of STL.

Deepak Mining Services Private Limited (DMSPL) was incorporated with the objective of providing consultancy to mining companies in India inter alia to the entire value chain of the mining business. However, currently it has no business activities. DMSPL is a wholly owned subsidiary of Deepak Fertilisers and Petrochemicals Corporation Limited.

Past Transaction

This story is from the March 2023 edition of M & A Critique.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the March 2023 edition of M & A Critique.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM M & A CRITIQUEView All
Cement Sector Consolidation Continues: Orient Cement to be acquired by Adani Group's Ambuja Cement
M & A Critique

Cement Sector Consolidation Continues: Orient Cement to be acquired by Adani Group's Ambuja Cement

The shopping spree for the Adani group seems to be unstoppable. Recently, Adani group announced yet another acquisition in the cement space. This time it is Orient Cement Limited.

time-read
3 mins  |
November 2024
ITAT held that the reserve created on amalgamation is capital in nature and not taxable as perquisite
M & A Critique

ITAT held that the reserve created on amalgamation is capital in nature and not taxable as perquisite

Recently, the Income Tax Appellate Tribunal, Mumbai held that the reserve created on amalgamation is capital in nature and not taxable as perquisite.

time-read
4 mins  |
November 2024
Mega Consolidation: SeQuent Scientific and Viyash Lifesciences backed by PE Carlyle Group
M & A Critique

Mega Consolidation: SeQuent Scientific and Viyash Lifesciences backed by PE Carlyle Group

SeQuent Scientific Limited announced a merger which is expected to create a unique & differentiated platform with leading market position in Animal healthcare segment.

time-read
7 mins  |
November 2024
Raymond Group continues Segregation of its Business Verticals
M & A Critique

Raymond Group continues Segregation of its Business Verticals

After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.

time-read
3 mins  |
August 2024
Ultratech Cements adds India Cement in its shopping cart
M & A Critique

Ultratech Cements adds India Cement in its shopping cart

India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.

time-read
3 mins  |
August 2024
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
M & A Critique

Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business

“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”

time-read
4 mins  |
August 2024
SIEMENS Energy to be a separate entity in alignment with global strategy
M & A Critique

SIEMENS Energy to be a separate entity in alignment with global strategy

Siemens AG announced its Vision 2020+ which included the spin-off of its Gas & Power [G&P) i.e., Energy Business into Siemens Energy.

time-read
5 mins  |
June 2024
Arvind Group separates its Advanced Material Business for independent growth trajectory
M & A Critique

Arvind Group separates its Advanced Material Business for independent growth trajectory

Advanced Material Business (AMD) of Arvind Limited focuses on advanced materials and caters to customer needs across the textile value chain, including specialty yarns, fabrics, and ready-made products.

time-read
3 mins  |
June 2024
Merger for bail-out from debt obligation
M & A Critique

Merger for bail-out from debt obligation

Ind Swift Limited (herein after also referred to as 'ISL' or 'Transferor Company') is engaged in the business of manufacturing of Pharmaceutical Products.

time-read
3 mins  |
June 2024
Batliboi Ltd. merging its associate company
M & A Critique

Batliboi Ltd. merging its associate company

Batliboi Limited has a history of collaborations with various foreign technical partners and has subsidiaries like Hydraulic & General Engineers Ltd. and Batliboi International Ltd. In March 2024, the board of Directors of Batliboi Limited accorded their approval for the merger of promoter owned private company with itself.

time-read
2 mins  |
May 2024