BASF India has announced the Board approval for the divestiture of its entire coatings business to Carlyle Group companies. The Board of Directors, based on the Audit Committee's recommendation, approved the transfer of 100% stake in BASF India Coatings Private Limited for a consideration of INR 230.16 crore, as determined by an independent valuer.

Transaction Structure and Timeline

The divestiture involves the complete sale of BASF India's wholly owned subsidiary to Bond German BidCo 2 GmbH and Bond France BidCo SAS, both Carlyle Group companies. The transaction follows a global agreement announced earlier between BASF and funds managed by Carlyle, in partnership with Qatar Investment Authority, relating to BASF's automotive OEM coatings, automotive refinish coatings and surface treatment businesses.

Financial Contribution Analysis

BASF India Coatings Private Limited contributed significantly to the parent company's operations during the last financial year. The subsidiary generated a turnover of INR 479.64 crore, representing 3.1% of the total revenue. Additionally, the unit's net worth stood at INR 199.74 crore, contributing 5.5% to the consolidated net assets.

Regulatory Compliance and Structure

The transaction has been structured in compliance with SEBI LODR Regulations, with detailed disclosures provided to stock exchanges. The Board meeting was held on March 30, 2026, commencing at 3:30 p.m. IST and concluding at 4:50 p.m. IST. The buyers are confirmed to be unrelated to the promoter, promoter group, or group companies, ensuring the transaction does not fall under related party provisions.

Strategic Impact

Upon completion of the transaction during the second quarter of 2026, BASF India Coatings Private Limited will cease to be a wholly owned subsidiary of BASF India Limited. The company has clarified that as of March 31, 2025, the coatings subsidiary was not classified as a material subsidiary, indicating the divestiture aligns with the company's strategic portfolio optimization efforts.

BASF India Limited has announced a board meeting scheduled for May 19, 2026, to review and approve crucial financial matters for the fiscal year 2026. The meeting represents a significant milestone in the company's annual reporting cycle and will address key shareholder interests.

Board Meeting Details

The board meeting is scheduled to take place on Tuesday, May 19, 2026, at 12:30 PM. The company will conduct the meeting in a hybrid format, with physical attendance at the Board Room on the 10th Floor of Godrej One, Vikhroli (East), Mumbai, and simultaneous participation through audio-visual means.

Key Agenda Items

The board will deliberate on two primary matters during the meeting. The primary focus will be on approving the company's financial performance for the fiscal year ending March 31, 2026.

The meeting agenda includes:

• Standalone and Consolidated Audited Financial Results: Review and approval of comprehensive financial results for the financial year ending March 31, 2026
• Dividend Recommendation: Consideration of dividend distribution on equity shares, subject to shareholder approval at the 82nd Annual General Meeting

Regulatory Compliance

The announcement follows strict adherence to SEBI regulations. BASF India Limited has notified both BSE Limited and the National Stock Exchange of India Limited about the scheduled meeting, as required under Regulation 29(1)(a) & (e) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The company has confirmed that the audited financial results, once approved by the board, will be promptly submitted to the stock exchanges in compliance with Regulations 33(3)(a) & (b) and 47 of the SEBI regulations.

Corporate Governance

The meeting notification was signed by key company officials, including Manohar Kamath, Director-Legal, General Counsel (India) & Company Secretary, and Pankaj Bahl, Senior Manager-Legal & Secretarial. This demonstrates the company's commitment to maintaining robust corporate governance standards and transparent communication with stakeholders.

The upcoming 82nd Annual General Meeting will provide shareholders with the opportunity to vote on any dividend recommendations approved by the board during this meeting.