BASF India will issue and allot equity shares of Rs 10 each, in the company to the shareholders of Cyanamid Agro, in the ratio of two shares for every five equity shares held in Cyanamid Agro. This will require the issue and allotment of 40,35,948 equity shares of Rs 10 each to the shareholders of Cyanamid Agro. BASF will therefore increase its authorised share capital to Rs 30 crore from Rs 25 crore, by creating 50,00,000 new equity shares of Rs 10 each. The share exchange ratio is based on the valuation done by CC Chokshi & Co and NM Raiji & Co.

BASF India also proposes to raise Rs 20 crore, through the issue of secured redeemable non-convertible debentures of the face value of Rs 100,00,000 each.

In a notice to its shareholders, BASF says that the issue is proposed on the terms and conditions including face value, issue price, rate of interest, redemption period, manner of redemption as the board may at its discretion deem fit, "by way of private placement with financial institutions, banks, mutual funds and/or other corporate bodies as may be decided by the board of directors". The proposed issue will largely augument the company's long-term resources for working capital requirements. Meanwhile, BASF India also plans to assign its textile dyes business to DyStar India and the export business (pertaining to textile dyes) to DyStar Textilfarben GmbH & Co, Germany, effective from December 1, 2000, for an aggregate consideration of Rs 7.01 crore. In addition, certain inventory of finished goods and certain laboratory equipment pertaining to the textile dyes business, was also sold to DyStar India.