Privi Speciality Chemicals promoter entity Vivira Investment and Trading Pvt Ltd is set to offload a significant stake worth ₹700.00 crores through a block deal mechanism. The transaction represents one of the notable divestments in the specialty chemicals sector, offering institutional investors exposure to the mid-cap company at a discounted valuation.

Block Deal Structure and Timeline

The block deal has been structured with specific parameters for optimal execution across two trading days:

The transaction will be managed by Motilal Oswal and DAM Capital as brokers, who are overseeing the book-building process. The deal offers flexibility to increase size based on investor demand.

Promoter Holdings and Historical Context

Vivira Investment held a substantial 39.03% stake in Privi Speciality Chemicals as of June 2025, making it a significant promoter entity. This latest divestment follows earlier promoter activity during the year:

The June transaction was executed through open market operations, contrasting with the current block deal approach designed for efficient large-scale institutional transfers.

Market Performance and Analyst Outlook

Privi Speciality Chemicals shares demonstrated strong market momentum, rising as much as 4.97% during trading to reach ₹3,239.00 per share. The stock closed 2.71% higher at ₹3,190.00, significantly outperforming the benchmark Nifty 50 which declined 0.01%.

The strong analyst consensus and significant upside potential underscore the company's positive outlook despite the promoter divestment.

Transaction Significance

The block deal mechanism enables efficient transfer of substantial shareholding without disrupting regular market trading. Such transactions typically attract mutual funds, insurance companies, and institutional investors seeking meaningful positions in specialty chemical companies. The 11.14% discount to the previous close price enhances attractiveness for institutional participants, while the dual-broker arrangement ensures broad market reach and optimal price discovery.

Privi Speciality Chemicals Limited has announced the approval of a fresh scheme of amalgamation involving its subsidiaries Privi Fine Sciences Private Limited and Privi Biotechnologies Private Limited. The Board of Directors approved the new scheme during a meeting held on December 19, 2025, from 3:00 p.m. to 5:00 p.m., as disclosed in their regulatory filing to BSE and NSE.

Background of Corporate Restructuring

This development follows the company's earlier withdrawal of a similar amalgamation scheme in November 2025. The Board had previously withdrawn the scheme based on observations received from stock exchanges, with plans to refile the application shortly. The company has now fulfilled that commitment with the approval of this comprehensive new scheme under Sections 230 to 232 of the Companies Act, 2013.

Details of the Amalgamation Scheme

The approved scheme involves the amalgamation of Privi Fine Sciences Private Limited (PFSPL) and Privi Biotechnologies Private Limited (PBPL) with Privi Speciality Chemicals Limited. The scheme is subject to approvals from shareholders, creditors, the National Company Law Tribunal (NCLT), and other regulatory authorities as required under applicable laws.

Financial figures as of September 30, 2025 (Standalone basis)

Share Exchange Ratio and Consideration

Under the scheme, no cash consideration is proposed. The share exchange mechanism is structured with specific ratios based on independent valuations.

Business Operations and Strategic Rationale

Privi Fine Sciences operates two manufacturing units - one operational facility in Lote, Chiplun, Maharashtra, and a second unit in Jhagadia, Gujarat, spanning 152,444.46 square meters for green science business. The company is currently conducting pilot-level tests for products developed through in-house research using green science chemistry.

Privi Biotechnologies focuses on biotechnology products and research & development for fragrances, flavours, and preservatives. The amalgamation aims to create operational synergies, reduce administrative costs, and enhance market competitiveness through consolidated operations.

Expected Post-Amalgamation Shareholding

The scheme will result in changes to the shareholding pattern of Privi Speciality Chemicals:

The transaction falls within the ambit of related party transactions but is conducted on an arm's length basis, supported by independent valuations and fairness opinions. The company has submitted the required disclosures in compliance with SEBI regulations, marking a significant step forward in its corporate restructuring initiative.