Sirca Paints India Ltd’s shares were up by 3.16 per cent after the company said it had entered into an agreement with New Wembley Products LLP for the acquisition of a business undertaking related to the sale and distribution of products. This acquisition includes the acquisition of technical knowhow, all intellectual property rights, including brand name, trademark, and other intellectual property, customer and vendor relationships, digital assets, books and records, and identified employees of New Wembley Products LLP.
The transaction, executed on a ‘slump sale’ basis for an aggregate lumpsum purchase consideration of ₹20 crore, does not include the manufacturing facilities of New Wembley Products LLP. However, it grants SPIL the exclusive right to use New Wembley Products LLP’s intellectual property for the sale of products.
The company said the acquisition is expected to enhance SPIL’s footprint in its line of business, to provide benefits of synergy, growth, brand building, and an increase in the scale of business operations. During financial year 2023-24, the operating revenue of the acquired businesses stood at ₹50 crore.
The shares were up by 3.16 per cent at ₹329.45 at 3.25 pm on the BSE.