Sudarshan Chemicals Industries Limited’s Board of Directors has approved the in-principle acquisition of 1,62,16,847 equity shares, representing 70.26% of Sudarshan Colorants India Limited. This strategic move, valued at approximately ₹1,020 per share, is intended for internal restructuring, consolidating direct ownership of the step-down subsidiary by the parent company. The transaction, involving cash consideration, is expected to enhance operational efficiency and does not impact control or business operations.
Board Approves Strategic Acquisition for Restructuring
Sudarshan Chemicals Industries Limited announced today that its Board of Directors has granted in-principle approval for a significant acquisition aimed at restructuring shareholding within the group. The company will acquire 1,62,16,847 equity shares, representing 70.26% of the total shareholding in its step-down subsidiary, Sudarshan Colorants India Limited (formerly Heubach Colorants India Limited). The current shareholding in the target company is held by other overseas subsidiaries: Sudarshan Europe B.V., Sudarshan Switzerland HLD1 AG, and Sudarshan Switzerland HLD2 AG.
Transaction Details and Rationale
The proposed acquisition is structured as a cash consideration transaction, with the cost of acquisition determined at an arms’ length fair value, adhering to applicable exchange control and SEBI regulations. Each equity share has a face value of ₹10.00/-. This internal restructuring initiative is designed to consolidate direct ownership of Sudarshan Colorants India Limited by the parent company, Sudarshan Chemicals Industries Limited. The company emphasized that this transaction will not affect the control or business operations of the Target Company.
Financial Impact and Disclosure
The unaudited financial results for the quarter ended June 30, 2026, were also approved during the same board meeting. These results, along with a limited review report, have been uploaded to the company’s website. Details regarding the proposed acquisition, as required by SEBI regulations, are provided in Annexure B. The company stated that specific details of governmental or regulatory approvals required are not applicable at this stage, with a report on the transaction to be provided subsequent to its execution. There is currently no specific timeline proposed for the completion of this acquisition.
Unaudited Financial Results Also Approved
In addition to the acquisition approval, the Board of Directors also approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2026. These results were reviewed and recommended by the Audit Committee. The company has also confirmed that the unaudited financial results will be uploaded on its website and published in newspapers as per the prescribed format.
Source: BSE
