Gains from the transfer of Nippon Paints' stock to a BVI entity benefit Berger Paints

30 Aug 2023 , 11:09 AM

As Nippon Paints Automotive Coatings chose to transfer its shareholding in Berger Paints to Isaac Newton Corporation under a novation agreement to replace the ownership, Berger Paints shares were trading up 1.66%, at Rs 720.8, at 2:34 pm on August 29. Isaac Newton Corporation is a business constituted in accordance with British Virgin Islands law.

Since 2016, Berger Paints and Nippon Paints Automotive Coatings have been partners in a joint venture known as Berger Nippon Paint Automotive Coatings Private Limited.

According to the company’s exchange filing dated August 29, Nippon Paints Automotive Coatings transferred and handed over all of the rights, powers, titles, interests, benefits, obligations, and responsibilities it had under the novation agreement to Isaac Newton Corporation.

In the April to June quarter, Berger Paints’ net profit grew 39% Year-over-Year (YoY) to Rs 355 crore. In the same period, the company’s revenue climbed 9.7% YoY to Rs 3030 crore.

Given the continued strength of the demand outlook and the favourable progress of the monsoon, infrastructure investments, and an extended holiday season, Berger Paints anticipates double-digit sales growth for the year as a whole.

The second-largest domestic paints manufacturer, Berger Paints, has production facilities in India, Nepal, Poland, and Russia.

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