The company said it will allocate one share of Aarti Pharmalabs, the newly formed unit, against every four Aarti Industries shares they hold. Analysts were, however, left unimpressed by the ratio, leading to a muted reaction in the stock.
Aarti Industries on Thursday said the demerger will also result in achieving operational efficiencies by streamlining of the relevant businesses.
In FY21, Aarti Pharmalabs contributed 19.8 per cent to the total revenue of Aarti Industries. In June quarter, the share stood at 18.4 per cent. Aarti Industries said a part of the specialty chemical business that is going to its pharma unit accounts for less than 3 per cent of the revenues of the speciality chemical business.
Aarti Industries traded at Rs 930, down 2.85 per cent on BSE.
“The overall view is bullish for both the verticals. Therefore, investors should hold the stock and take benefit of value unlocking. Technically, Rs 920-900 is a strong demand zone for the counter while Rs 980-1,000 is an immediate supply zone; above this, we can expect a rally towards Rs 1,100 level,” said Santosh Meena, Head of Research, Swastika Investmart.
