Asian Granito India Limited has approved the conversion of an outstanding loan and reimbursement of expenses receivable from its wholly owned subsidiary, Harmony Surfaces Marbles TR. LLC S.P, Sharjah (HSM Sharjah), into equity shares. The Board of Directors at its meeting on 15 July, 2026, sanctioned the subscription to 372 equity shares at an issue price of AED 3,496 per share, aggregating to AED 13,00,430 (approximately ₹3.38 crore). This strategic move will enable the subsidiary to raise additional funds for business expansion and operational requirements.

The transaction involves the conversion of the company's loan into equity, ensuring HSM Sharjah remains a wholly owned subsidiary post-conversion. The acquisition is considered a related party transaction conducted at arm's length, based on a valuation report, with no interest from the promoter or promoter group. The indicative time period for the completion of this acquisition is on or before 31 October, 2026.

Concurrently, the Board took note of a proposed fresh issue of equity shares by HSM Sharjah to third-party investors. This issuance will result in the dilution of Asian Granito India Limited's shareholding from 100% to 51%. Consequently, HSM Sharjah will cease to be a wholly owned subsidiary and will become a subsidiary of the company, with Asian Granito retaining majority ownership and control.

HSM Sharjah is engaged in trading activities of various ceramic and porcelain products like marble and tiles. Incorporated on 11 May, 2023, the entity reported a turnover of AED 3,17,48,106 as on 31 March, 2026. During the preceding financial year, the subsidiary contributed a turnover of ₹77.52 crore, accounting for 4.17% of the consolidated turnover of Asian Granito India Limited.

The fresh issuance of shares to identified investors, who do not belong to the promoter or promoter group, does not constitute a related party transaction. The change in shareholding structure is aimed at bolstering the financial position of HSM Sharjah while allowing the parent company to maintain controlling interest.

Financial and Operational Details of HSM Sharjah

Asian Granito India Ltd completed the disposal of its entire 26% equity stake in AGL Proteins Private Limited and Allomex Steel Private Limited to AGL Industries Limited on 27 June 2026. This strategic transfer reorganizes the company's investment structure by shifting the associate status of these entities to its wholly-owned subsidiary, AGL Industries Limited. The completion of this transaction marks the finalization of the proposal initially disclosed to the exchanges on 30 May 2026.

Pursuant to the transfer, AGL Proteins Private Limited and Allomex Steel Private Limited have ceased to be associate companies of Asian Granito India Limited. Instead, they have now become associate companies of AGL Industries Limited. This move consolidates the holdings within the subsidiary framework, potentially streamlining the group's operational oversight and corporate governance structure.

The disclosure was made to the stock exchanges in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that all necessary details, including those required under SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, were submitted previously.

Transaction Details

The following table summarizes the key details of the disposal:

The company confirmed that the information regarding this transaction is available on its official website. Dhruti Trivedi, Company Secretary and Compliance Officer, signed the disclosure submitted to BSE Limited and National Stock Exchange of India Limited.