1/7 Like to share few critical updates on #PCBL (Philip Carbon Black)
1. Acquisition of Aquapharm Chemicals Pvt Ltd. for a total consideration of Rs.3800 crores.
2. Promoters infusing 448 crores to fund the Acquisition.
3. Raising 700 Crores via NCD
Let go in little detail.
1. Acquisition of Aquapharm Chemicals Pvt Ltd. for a total consideration of Rs.3800 crores.
2. Promoters infusing 448 crores to fund the Acquisition.
3. Raising 700 Crores via NCD
Let go in little detail.
2/7 #PCBL through its subsidiary acquired 100% stake in Aquapharm Chemicals Pvt Ltd for a consideration of Rs.3800 Crores.
ACPL is into specialty chemicals, one of the India largest producers of Phosphonate.
It is into high margin business. (EBITDA margin of close to 20%)
ACPL is into specialty chemicals, one of the India largest producers of Phosphonate.
It is into high margin business. (EBITDA margin of close to 20%)
3/7 For FY23, ACPL Revenue was 2045 crores and EBITDA was close to 417 Crores.
It has a manufacturing facility in India, USA, Saudi Arabia.
This acquisition is funded by Internal Accruals + outside funding.
So, let's look into it briefly.
#PCBL
It has a manufacturing facility in India, USA, Saudi Arabia.
This acquisition is funded by Internal Accruals + outside funding.
So, let's look into it briefly.
#PCBL
4/7 #PCBL raised 700 Crores (70000 units @ Rs.100000 each) via NCD's.
Repayment Tenure is 5 years.
Rate of Interest is 8.79%
So apart from Interest payment, PCBL has an outflow of 105 crores in each year from 2025 to 2027.
and 192.5 crores each in 2028 and 2029
Repayment Tenure is 5 years.
Rate of Interest is 8.79%
So apart from Interest payment, PCBL has an outflow of 105 crores in each year from 2025 to 2027.
and 192.5 crores each in 2028 and 2029
5/7 Recently #PCBL issued convertible warrants to Promoters. Issued 1.6 crore shares @ 280 per shares to
1. Rainbow Investment Ltd
2. Quest Capital Market Ltd
3. STEL Holding Ltd.
Total consideration to be received is 448 crores.
1. Rainbow Investment Ltd
2. Quest Capital Market Ltd
3. STEL Holding Ltd.
Total consideration to be received is 448 crores.
6/7 Conclusion - This Acquisition is into completely into different foray. Management smartly moving towards high margin business.
Post acquisition topline might reach 7000 crores.
And bottom-line might hit 550 to 600 crores (PAT).
Interest Cost might go up from 90 to 150 crores
Post acquisition topline might reach 7000 crores.
And bottom-line might hit 550 to 600 crores (PAT).
Interest Cost might go up from 90 to 150 crores
7/7 But overall, this Acquistion might turn out to be a game changing from shareholder point of view. Need to closely monitor management commentary and other developments if any.
For me it is a buy in sip stock.
#PCBL #Goenka #Midcap #Multibagger #StockMarketindia
For me it is a buy in sip stock.
#PCBL #Goenka #Midcap #Multibagger #StockMarketindia
Loading suggestions...