BASF India Limited announced the Board’s approval to divest its entire 100% stake in its wholly-owned subsidiary, BASF India Coatings Private Limited. The sale is being executed in alignment with a global agreement involving BASF and the Carlyle Group/QIA partnership. The transaction consideration is set at INR 230.16 crore, with the closing anticipated in the second quarter of 2026. Following completion, the subsidiary will cease to be part of BASF India Limited.
Approval for Divestiture of Coatings Subsidiary
Following a recommendation from the Audit Committee, the Board of Directors of BASF India Limited, in its meeting held on March 30, 2026, formally approved the transfer and sale of the 100% stake held in BASF India Coatings Private Limited. This wholly owned subsidiary is being sold to Bond German BidCo 2 GmbH and Bond France BidCo SAS, identified as Carlyle Group Companies.
Transaction Value and Timeline
The aggregate consideration for the transaction, as determined by an Independent Valuer and subject to closing adjustments, is set at INR 230.16 crore. The planned Closing Date for the transaction is during the second quarter of 2026. Upon closing, BASF India Coatings Private Limited will no longer be a subsidiary of BASF India Limited.
Materiality Assessment (FY 2024-25)
The announcement detailed the materiality of the subsidiary based on the Consolidated Financial Statements for the year ended March 31, 2025:
- Turnover/Revenue Contribution: INR 479.64 crore, representing 3.1% of the total.
- Net Worth/Net Assets Contribution: INR 199.74 crore, representing 5.5% of the total.
It was noted that as of March 31, 2025, BASF India Coatings Private Limited was not a material subsidiary of BASF India Limited.
Details of the Buyers
The buyers in this transaction are Bond German BidCo 2 GmbH and Bond France BidCo SAS, which are part of the Carlyle Group Companies. The announcement confirms that the Buyers are not related to the promoter or promoter group/group companies of BASF India Limited.
Agreement Finalization
The formal Sale and Transfer Agreement is expected to be executed on or before the planned Closing Date, which is anticipated during the second quarter of 2026.
Source: BSE
