Manali Petrochemicals To Divest Entire Stake In UK-Based Notedome Limited

Board approves strategic divestment

Manali Petrochemicals Ltd (MPL), a leading manufacturer of polyols and specialty chemicals in India, has announced its decision to divest its entire stake in Notedome Limited, a UK-based subsidiary. The board of directors has formally approved the sale plan, which is expected to be executed at a valuation multiple of Notedome’s adjusted EBITDA of £2.12 million.

Notedome, acquired by MPL in 2016 for approximately ₹120 crore, specializes in polyurethane systems and caters to over 45 countries. The divestment marks a strategic shift for MPL as it aims to streamline its global operations and focus on high-growth domestic and regional markets.

Financial rationale and deal structure

The transaction is expected to unlock value for MPL and improve its capital allocation efficiency. While the exact deal value remains undisclosed, sources indicate that it will be based on a multiple of Notedome’s latest adjusted EBITDA, ensuring a fair market valuation.

Key highlights of the announcement

- MPL board approved the sale of its entire stake in Notedome Limited, UK  
- Notedome reported an adjusted EBITDA of £2.12 million in the latest fiscal  
- The deal will be executed at a valuation multiple of the EBITDA figure  
- MPL acquired Notedome in 2016 to expand its global footprint  
- The divestment aligns with MPL’s strategy to consolidate core operations  

Strategic outlook and future focus

Manali Petrochemicals’ decision to exit Notedome reflects its renewed focus on strengthening its domestic business and enhancing shareholder returns. The company plans to reinvest proceeds from the sale into capacity expansion, R&D, and product innovation within India and Southeast Asia.

Industry analysts view the move as a prudent step toward optimizing MPL’s portfolio and reducing exposure to overseas volatility. The company’s continued emphasis on specialty chemicals and sustainable manufacturing is expected to drive long-term growth.

Sources: Manali Petrochemicals Ltd, Financial Express, IBEF