Tata Chemicals announced that its wholly-owned subsidiary, Tata Chemicals International Pte. Limited (TCIPL), has executed a Share Purchase Agreement to acquire 100% equity stake in Novabay Pte. Limited, a Singapore-based premium sodium bicarbonate manufacturer. The acquisition has been confirmed at an enterprise value of EUR 25.00 million.

Strategic Acquisition Details

The acquisition parameters demonstrate the strategic nature of this transaction:

Novabay operates with an issued and paid-up share capital of US$ 35,532,140.00, comprising 3,553,214 ordinary shares of US$ 10.00 each. The company recorded a turnover of SGD 29.49 million, positioning it as a significant player in the premium sodium bicarbonate market.

Business Profile and Market Position

Novabay, incorporated in November 2015, is primarily engaged in manufacturing and selling premium-grade sodium bicarbonate. The company serves diverse sectors including pharmaceutical, food, personal care, cosmetics, environmental water treatment, and chemical industries across multiple geographic regions.

The company is recognized as among the largest premium sodium bicarbonate producers in the Asia-Pacific region, excluding China. Its fully automated facility holds key certifications including cGMP and API, supporting its position in high-value pharmaceutical and personal care applications.

Strategic Rationale and Market Dynamics

The Managing Director and CEO of Tata Chemicals emphasized that Novabay's focus on premium-grade sodium bicarbonate aligns seamlessly with the company's strategy to expand presence in high-value, non-cyclical product segments. This acquisition strengthens Tata Chemicals' capabilities in specialty bicarbonate markets and enhances ability to serve premium customer requirements.

The premium-grade sodium bicarbonate market benefits from steady demand drivers including rising haemodialysis needs in healthcare sector, improved access to medical care globally, growing consumption in emerging markets, and expanding applications in personal care and food sectors.

Corporate Structure and Compliance

Post-completion, Novabay will become a 100% subsidiary of TCIPL, which is itself a wholly-owned subsidiary of Tata Chemicals Limited. The proposed acquisition does not fall within related party transactions, and the promoter/promoter group/group companies have no existing interest in Novabay.

The acquisition price is subject to customary adjustments for net debt, net working capital, and other standard commercial terms. No governmental or regulatory approvals are required for completing this transaction.

Growth Potential and Value Creation

With current production capacity of approximately 60,000 tons and potential expansion to 100,000 tons, Novabay offers significant growth opportunities. The company's established market presence, technical certifications, and automated manufacturing capabilities position it well for capturing increasing demand in premium sodium bicarbonate applications. This strategic acquisition is expected to accelerate Tata Chemicals' long-term growth and value creation objectives while strengthening its portfolio in specialty chemicals and premium-grade products serving non-cyclical end markets.

Tata Chemicals has finalised the terms for its non-convertible debentures (NCDs) worth ₹1,500 crores, with the Internal Committee constituted by the Board of Directors approving the key terms and conditions for the debt issuance.

NCD Issuance Structure

The company will issue 1,50,000 NCDs with a face value of ₹1,00,000 each, aggregating to ₹1,500 crores. The securities are structured as listed, unsecured, rated, redeemable, taxable, non-cumulative NCDs to be issued on a private placement basis to eligible investors.

Timeline and Tenure Details

The deemed date of allotment has been set for December 17, 2025, with the NCDs carrying a tenure of 2 years and 364 days from the deemed date of allotment. The instruments will follow a bullet maturity structure with full repayment at the end of the tenure period.

Interest and Rating Framework

The NCDs will carry a fixed interest rate determined through coupon basis price bidding at the Electronic Bidding Platform (EBP) of NSE. The bidding can be conducted on uniform or multiple yield allotment basis, with annual interest payments scheduled except upon final maturity.

Strategic Capital Access

This debt fundraising initiative allows Tata Chemicals to access capital markets without equity dilution while leveraging strong credit ratings from both CARE and CRISIL. The private placement structure provides flexibility in investor selection and terms negotiation, positioning the company to meet its capital requirements efficiently through debt instruments.