Coromandel International , a leading fertilizer and crop protection company, has reached a significant milestone in its acquisition plans for NACL Industries Limited. The company announced that it has received final comments from the Securities and Exchange Board of India (SEBI) on its Draft Letter of Offer for an open offer to acquire a substantial stake in NACL Industries.

Open Offer Details

The open offer aims to acquire up to 5,24,62,320 fully paid-up equity shares of NACL Industries Limited, representing 26.00% of the voting share capital. These shares have a face value of INR 1.00 each. This move signifies Coromandel International's intent to strengthen its position in the agrochemical sector.

Regulatory Approval

SEBI issued its final comments on the Draft Letter of Offer on August 5, 2025, under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This approval marks a crucial step forward in the acquisition process, allowing Coromandel International to proceed with the open offer.

Next Steps

Following SEBI's comments, Coromandel International has stated that it will take further steps as recommended by the regulatory body. The company will adhere to the requirements outlined in the SEBI Takeover Regulations for the open offer process.

Disclosure and Compliance

In line with regulatory requirements, Coromandel International has promptly disclosed this development to the stock exchanges. The company's Company Secretary & Compliance Officer, B Shanmugasundaram, submitted the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Market Impact

This open offer, if successful, could significantly alter the ownership structure of NACL Industries Limited and potentially impact the competitive landscape in the agrochemical industry. Investors and market watchers will likely keep a close eye on the developments as Coromandel International moves forward with the acquisition process.

As the situation unfolds, stakeholders will be keen to see how this potential acquisition aligns with Coromandel International's long-term strategy and what it might mean for the future of both companies in the agricultural inputs sector.

Coromandel International , a leading fertilizer and agri-solutions provider, recently reported facing challenges due to rising costs for key inputs, particularly sulfur and sulfuric acid. Despite these headwinds, the company has managed to maintain a positive outlook on its financial performance.

Input Cost Pressures and Mitigation Strategies

The company acknowledged that increasing prices of essential raw materials have put pressure on its margins. However, Coromandel International has been proactive in addressing these challenges:

1. Procurement Efficiencies: The company has implemented strategies to offset some of the impacts of rising input costs through improved procurement efficiencies.

2. Stable EBITDA Outlook: Despite the cost pressures, Coromandel International expects to maintain a stable EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of ₹5,000 per metric ton for manufactured products.

BMCC's Production Plans

In a related development, BMCC (Baobab Mining and Chemicals Corporation), a subsidiary of Coromandel International, has announced ambitious production targets:

• FY26 Output Goal: BMCC aims to achieve rock phosphate output of 300,000-400,000 tons for the fiscal year 2026.
• Production Expansion: The company plans to double its production within two years, signaling a strong commitment to growth and increased capacity.

Financial Performance

An analysis of Coromandel International's recent financial data reveals:

The company has shown significant year-over-year growth across key financial metrics, despite the challenges in the input cost environment:

• Revenue Growth: The company's revenue increased by 48.99% compared to the same quarter last year, reaching ₹7,126.00 crore.
• EBITDA Improvement: EBITDA saw a substantial increase of 59.04%, aligning with the company's goal of maintaining stable EBITDA for manufactured products.
• Profitability: Net profit grew by 62.23%, demonstrating the company's ability to manage costs effectively and maintain profitability.
• Margin Expansion: The operating profit margin improved to 11.11%, a 7.14% increase year-over-year, indicating enhanced operational efficiency.

These financial results suggest that Coromandel International's strategies to mitigate input cost pressures are yielding positive outcomes. The company's focus on procurement efficiencies and maintaining stable EBITDA appears to be effective in navigating the challenging cost environment.

As Coromandel International continues to address input cost pressures and expand its production capabilities through BMCC, the company seems well-positioned to maintain its growth trajectory and operational efficiency in the coming quarters.