Coromandel International Limited has executed an agreement to convert a loan, including accrued interest, amounting to ₹108.07 crore into equity shares of its wholly-owned subsidiary, Coromandel Chemicals Limited. The conversion, priced at ₹39.95 per share, was approved by the subsidiary’s Audit Committee and Board on July 23, 2026, and is considered an arm’s length transaction.
Loan Conversion in Subsidiary
Coromandel International Limited announced today the execution of an agreement to convert a significant loan into equity within its wholly-owned subsidiary, Coromandel Chemicals Limited. The total amount subject to this conversion is ₹108.07 crore, which includes the principal loan amount and any accrued interest.
Transaction Details
The conversion will result in Coromandel Chemicals Limited issuing 2,70,52,132 equity shares. Each share has a face value of ₹10 and is being issued at a premium, with an issue price of ₹39.95 per share. This transaction was approved by the company’s Audit Committee and Board of Directors on July 23, 2026. The company has stated that this transaction is undertaken on an arm’s length basis.
Subsidiary Ownership
Coromandel Chemicals Limited is a wholly-owned subsidiary of Coromandel International Limited. The agreement for this conversion was dated September 2, 2026, following up on a previous letter dated July 23, 2026. The original loan agreement was executed on December 1, 2025, and the outstanding loan amount including accrued interest as of June 30, 2026, was ₹108.07 crore. No security was provided for this unsecured loan.
Source: BSE
