MRPL to increase stake in MSEZ to 27.92%
Mangalore Refinery and Petrochemicals Ltd (MRPL) has approved increasing its stake in Mangalore SEZ Ltd (MSEZ) from 0.96 per cent to 27.92 per cent by acquiring equity shares from IL&FS at a cost of ₹65.66 crore.
MRPL informed stock exchanges that the meeting of the board of directors of MRPL on January 20, 2025, approved acquisition of MSEZ’s 1,34,80,000 equity shares of ₹10 each from IL&FS at revised price. After this acquisition, equity stake of the company shall increase from 0.96 per cent to 27.92 per cent in MSEZ, it said. ONGC is a promoter of MRPL and MSEZ.
In its board meeting held on March 22, 2024, the company had approved the acquisition of 1,34,80,000 equity shares of MSEZ from IL&FS. The acquisition cost mentioned at that time was ₹47.18 crore (1,34,80,000 equity shares at ₹35 a share).
Monday’s board meeting put the revised cost of acquisition at ₹65.66 crore (1,34,80,000 equity shares at ₹48.708 per share). The nature of consideration will be cash consideration. Indicative time period for completion of the acquisition is one year.
Incorporated as special purpose vehicle on February 24, 2006, MSEZ is a joint venture of ONGC (26 per cent) IL&FS (50 per cent), Karnataka Industrial Area Development Board (23 per cent), MRPL (0.96 per cent), and Kanara Chamber of Commerce and Industry (0.04 per cent).
Spread over an area of 1,607 acres, MSEZ is operational from 2014 with around 85 per cent area leased out. It has 10 operational units such as MRPL (aromatic complex), Syngene, ISPRL, Catsynth speciality chemicals and other food processing units.
The total turnover of MSEZ stood at ₹187.57 crore in 2023-24 against ₹344.64 crore in 2022-23. The turnover was at ₹198.99 crore in 2021-22, and ₹169.48 crore in 2020-21.
The company informed stock exchanges that MSEZ is one of India’s successful SEZs with investments exceeding $2 billion so far and exports of over $3.2 billion worth of goods from its units.
MSEZ is a multiproduct SEZ and its main business is leasing of the land to the industries and providing utility services such as water supply, power supply, lease rental, zone maintenance, common effluent treatment plant, marine outfall and pipe line corridor.
