Advanta India to buy Golden Seeds Pvt Ltd

Advanta India Ltd has announced that the Company has agreed to buy the business of Golden Seeds Pvt Ltd ("Golden"). The size of the business acquisition is Rs 60.10 Crores in addition to this, the Company expects to pay about Rs 17.50 Crores for inventory and receivables.

This acquisition provides the Company a platform in vegetables seeds and will help the Company to develop a strong position in the Indian and Asian vegetables seed market. The Company hope to leverage the strong brand equity of Golden seeds, their proprietary germplasm base, excellent breeding programs and outstanding production capabilities to establish a leadership position in this market segment for the Company.

Golden's operations are based in Bangalore and Delhi. They have marketing network all over the country. Their major presence is in crops like Cabbage, Cauliflower, Tomato and Gourds. Golden is a profitable business with net revenue of about Rs 30 crores.

The stock closed the day at Rs.968.45, down by Rs.10.65 or 1.09%. The stock hit an intraday high of Rs.1008 and low of Rs.961.55. The total traded quantity was 142474 compared to 2 week average of 694837.

Source : Equity Bulls

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