Kajaria Ceramics Limited announced the completion of its acquisition of an additional 25% equity stake in Kajaria Adhesive Private Limited (KAPL) on February 18, 2026. This transaction, involving cash consideration of Rs. 25,000, has increased Kajaria’s shareholding from 75% to a full 100%, making KAPL a wholly-owned subsidiary. The acquisition was executed on an arms’ length basis, despite being a related party transaction, following prior approval from the Audit Committee.
Finalization of Full Acquisition of KAPL
Kajaria Ceramics Limited has successfully concluded the acquisition process for Kajaria Adhesive Private Limited (‘KAPL’), as disclosed in continuation of their earlier communication dated January 30, 2026. On February 18, 2026, the Company acquired an additional 2,500 equity shares, representing 25% of KAPL. This strategic purchase resulted in Kajaria Ceramics increasing its total shareholding to 100%, thereby establishing KAPL as a wholly-owned subsidiary.
Transaction Details and Rationale
The primary objective of this acquisition was to consolidate full ownership of KAPL. The consideration paid for the 25% stake was a cash consideration totaling Rs. 25,000.
It is noted that this transaction fell within the ambit of related party transactions, as the shares were acquired from Mr. Kartik Kajaria, Head (Adhesive Division) and a Promoter Group member. However, the Company confirms that the necessary prior approval from the Audit Committee was obtained, and the transaction was executed on an arms’ length basis.
Background of the Subsidiary (KAPL)
Kajaria Adhesive Private Limited is engaged in the Manufacturing of Adhesives for Tiles. The entity was incorporated on January 31, 2024, and has its registered office in New Delhi.
- Financial Snapshot (as of 31.03.2025): Turnover was Nil, and the Loss After Tax stood at Rs. 0.07 crore.
- Operational Status: KAPL is currently in the process of setting up a manufacturing facility in Erode (Tamil Nadu) to commence adhesive production.
- Geographic Presence: KAPL’s presence is currently limited to India.
Impact and Shareholding Change
This final acquisition signifies that Kajaria Ceramics’ shareholding control in KAPL has been successfully increased from 75% to 100%. The business of KAPL, focused on manufacturing adhesives, aligns with the strategic interests of Kajaria Ceramics, supporting its core building materials focus.
Source: BSE
