Berger Paints share price fell as much as 1.14 per cent on Tuesday after it informed BSE that the company and Nippon Paints Automotive Coatings, Japan, together with Nippon Paints (India) have entered into definitive agreements to transfer certain business including three wheeler and four wheeler (passenger cars and SUV) paint business of Berger and four wheeler (other than commercial vehicles, auto parts and ancillaries) paint business of Nippon Paints (India) to BNB Coatings India (BNB) at agreed values.
At 1.11 pm, Berger Paints was trading 0.45 per cent down at Rs 221.90. The scrip opened at Rs 224.50 and had touched a high and low of Rs 227.85 and Rs 220, respectively, in trade so far.
Later, Berger Paints share prices settled 0.79 per cent down at Rs 220.80.
The transferred businesses may include transfer of electro coat business also. The understanding is subject to the parties entering into definitive agreements as regards values and other terms and conditions, after due diligence.
BNB Coatings India is a joint venture company where Nippon Paints Automotive Coatings, Japan holds 51 per cent and Berger holds 49 per cent of paid-up capital. BNB is mainly engaged in the business of coatings for plastic substrate of automobiles.
The promoters holding in the company stood at 74.96 per cent while institutions and non-institutions held 11.56 per cent and 13.48 per cent, respectively.