For ₹ 54 crores, Asian Paints Purchased a Second Interest in White Teak

Asian Paints
Asian Paints

The business has continually kept its respectable dividend payout rate at 58.4%.

Asian Paints Limited’s stock increased 0.5% on June 26, 2023, and it is presently trading at ₹3305.85 per share on the BSE. The stock’s 52-week high on the BSE is ₹ 3,590 per share and its 52-week low is ₹ 2,677.65 per share.

For around ₹ 54 crore, Asian Paints paid the promoters for an extra 11% of White Teak’s equity share capital. The promoters of White Teak, Mr. Pawan Mehta and Mr. Gagan Mehta, sold 49% of the equity share capital of Obgenix Software Private Limited to the company for ₹180 crore in April 2022. Asian Paints currently owns 60% of White Teak’s equity share capital (2,40,600 equity shares with a face value of ₹10 apiece), making Asian Paints a subsidiary of White Teak.

Based on the accomplishment of mutually agreed upon financial objectives, Asian Paints granted the promoters of White Teak an earn out of around ₹ 59.5 crore. Asian Paints stated that it would purchase the remaining 40% of the equity share capital during the fiscal years 2025–2026 for a maximum sum of ₹ 360 crore.

White Teak is a private limited company that creates, sells, or otherwise deals in all types and descriptions of fans, lighting, and other decorative items.

The return on equity (ROE) track record of Asian Paints Ltd. is strong: the ROE over three years is 26.1%. Additionally, the business has continually kept its respectable dividend payment rate at 58.4%.

The Asian Paints group, established in 1942, is the biggest paint manufacturer in India. It also produces surfacing preparation products, organic composite solvents, thinners, and varnishes, enamels, or lacquers.

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