Germany-based chemicals major BASF SE is set to increase stake in its Indian arm up to 75 per cent through a voluntary open offer to buy shares at a price of Rs 274 from BASF India shareholders.

BASF SE currently holds a 52.69 percent equity stake in BASF India. The offer price represents a premium of 22% compared to the average daily high and low price during the last two weeks and a premium of 16% above the minimum price of Rs 236.70.

The company will purchase up to 6,289,591 fully paid-up equity shares of BASF India Ltd (constituting 22.31 per cent of its issued share capital), and the total purchase consideration is Rs 170 crore.

BASF has 1,300 employees in India, with production sites at Thane and Mangalore. The company’s businesses in India include agrochemicals, plastics, leather, coatings and textile chemicals.

The offer will begin on July 9 and end on July 28, 2008. However, the offer schedule is subject to change depending on the time taken by the regulatory process, an official release stated.