Primo Chemicals to acquire final stake in Flow Tech to establish Wholly Owned Subsidiary

Primo Chemicals to acquire final stake in Flow Tech to establish Wholly Owned Subsidiary​

Primo Chemicals Limited has approved the acquisition of the remaining equity stake in Flow Tech Chemicals Private Limited, a move set to transform the associate company into a wholly owned subsidiary of Primo Chemicals.

The Board of Directors of Primo Chemicals held a meeting on July 2, 2026, during which it approved the acquisition of the balance 51% equity stake in Flow Tech. This strategic transaction is intended to solidify operational control and generate long-term financial benefits through business synergies. Prior to this move, Primo had acquired a 49% equity stake in Flow Tech, classifying the company as an Associate Company within the promoter group.

The acquisition of the remaining 51% stake is set to be completed by March 31, 2027. The transaction involves a cash consideration and was decided upon at Rs. 1,418.20 per equity share. This price point remains consistent with the original share purchase agreement, despite a valuation report from BDO Valuation Advisory LLP dated July 1, 2026, noting a fair value of Rs. 1,545.40 per equity share.

The acquisition is described as being in line with the existing business activities of Primo Chemicals and is expected to enhance strategic operational control. The improved chlorine evacuation and increased utilization of Primo's chlor-alkali assets are key benefits, as the additional chlorine consumption generated by Flow Tech supports higher levels of cl-alkali production at Primo.

Financial Profile of Flow Tech Chemicals Private Limited​

Flow Tech Chemicals, which specializes in the manufacture of Chlorinated Paraffin and Hydrochloric Acid, has demonstrated consistent financial performance over the last three years, according to disclosed data. The company's paid-up capital is Rs. 76,26,080, comprising 7,62,608 equity shares with a face value of Rs. 10 each.

The financial overview of Flow Tech Chemicals Private Limited (CIN: U25202PB1996PTC067073) is summarized below:

Board Approvals and Voting Timeline​

In addition to the acquisition approval, the Board of Directors also approved a Postal Ballot Notice seeking members’ approval via remote e-voting for several resolutions. These approvals include:

• The appointment of Shri Dibakar Sarkar (DIN: 07761581) as a Non-Executive Independent Director.
• The appointment of Shri Sobhag Mal Jain (DIN: 08770020) as a Non-Executive Independent Director.
• The approval of remuneration payable to Managing Director Shri Naveen Chopra for the remaining two years of his current term.
• The approval of remuneration payable to Executive Director Shri Jatin Dahiya for the remaining two years of his current term.

The Board has fixed July 3, 2026, as the Cut-off Date to determine member eligibility. The e-voting period is scheduled to begin on July 7, 2026 (at 10:00 IST) and conclude on August 5, 2026 (at 17:00 IST).

PRIMO Stock Price Movement​

Primo Chemicals Limited shares today edged higher in the post-market session, finishing at ₹24.79 after gaining 3.95%. The stock traded within a narrow band defined by an intraday low of ₹24.16 and a high of ₹25.72, with 340,307 shares transacted during the day.