Multibagger Stock Sudarshan Chemical Soars 20%, Hits 52-Week High After ₹1,180 Crore Heubach Acquisition

Shares of Sudarshan Chemical Industries jumped 20% on Friday, October 11, reaching a 52-week high. This surge came after the company announced it would acquire the global pigment business of Germany’s Heubach Group.

In an official statement, Sudarshan Chemical said, “Sudarshan Chemical Industries Limited has entered into a definitive agreement on October 11, 2024, where its Netherlands-based subsidiary, Sudarshan Europe BV, will acquire Heubach Group’s global pigment business for €127.5 million (around ₹1,180 crore).”

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Heubach Group is a key player in the specialty chemicals industry, producing organic and inorganic pigments, dyes, dispersions, and anti-corrosion pigments. The acquisition is an all-cash deal, meaning Sudarshan Chemical will purchase 100% of Heubach Group’s pigment businesses.

The deal is expected to be completed in 3-4 months, pending regulatory approvals and shareholder consent.

About Heubach Group

Heubach Group has a history of over 200 years and became the world’s second-largest pigment producer in 2022 after acquiring Clariant’s pigment business. The company has a strong global presence, especially in Europe, the Americas, and the Asia Pacific region.

Stock Performance

After the acquisition news, Sudarshan Chemical’s stock soared 19.99% to ₹1,216.55 on the BSE and ended the day at ₹1,207.50, up 19.11%. From its 52-week low of ₹440, the stock has risen by 174%. Over the past year, it has climbed 144%, providing investors with multibagger returns, and has increased 17.5% in just the last month.

Trendlyne data shows that nine analysts recommend a “BUY” rating for Sudarshan Chemical Industries.