Lykis Limited has issued a regulatory disclosure warning of material adverse impacts on its export operations and financial performance due to the ongoing Middle East conflict. The Mumbai-based FMCG, cosmetics, and personal care company, which exports to over 40 countries globally, faces significant operational disruptions affecting its international business model.

Export Route Disruptions

The company's export routes to key destinations in Africa, the Middle East, and other regions have been severely disrupted due to escalating hostilities in the Red Sea and Gulf of Aden region. This has resulted in shipping and freight partners increasing costs and creating heightened risks of order fulfillment delays to international customers and distribution partners.

The company's private label and contract manufacturing commitments, including obligations to international brand partners and retailers, may also face delays. While Lykis Limited is communicating proactively with affected customers and exploring contingency arrangements, the company cannot guarantee complete avoidance of service disruptions.

Strategic African Market Exposure

Africa represents a strategically significant and growing export destination for Lykis Limited. The company distributes products spanning personal care, oral care, skin care, baby care, FMCG food products, and cosmetics across East, West, and North Africa markets. These trade lanes face disproportionate exposure to the current Middle East disruption due to their routing dependency on affected sea passages.

The company acknowledges material risks including:

• Shipment delays to African markets
• Increased landed costs for customers
• Potential short-term volume declines during the disruption period

Lykis Limited is actively engaging with its African distribution network to manage expectations, explore alternative routing where feasible, and prioritize shipment schedules for time-sensitive product categories.

Financial Performance Impact

The operational disruptions are expected to have discernible adverse impacts on the company's near-term financial performance across multiple dimensions. Rerouting shipments via longer passages is resulting in materially higher freight costs per unit, which may not be immediately recoverable through customer pricing adjustments.

Elevated geopolitical risk in affected corridors has also resulted in higher war-risk insurance premiums and tightened trade finance conditions from banking partners. Extended lead times may cause revenue recognition to shift across reporting periods or result in order cancellations by international buyers.

Company Response and Outlook

The combination of rising logistics costs and existing export contract commitments creates risks of near-term margin compression. Extended shipment cycles are lengthening the cash conversion cycle and may place additional pressure on working capital requirements.

Lykis Limited is maintaining close coordination with relevant trade bodies, shipping industry stakeholders, and its network of international agents and distributors. The company has committed to communicating material developments required under applicable regulations to stock exchanges and shareholders without delay. The Board will continue monitoring the exposure closely and provide updates to shareholders as the situation develops.

Lykis Limited has submitted the pre-offer advertisement cum corrigendum to the Detailed Public Statement to BSE Limited on March 16, 2026, pursuant to Regulation 30 of SEBI (LODR) Regulations. The submission relates to the mandatory open offer by Parshav Vatika LLP, along with persons acting in concert K8 Products LLP and Tidagela Ventures Private Limited, to acquire up to 50,37,541 fully paid-up equity shares representing 26% of the company's total voting share capital at ₹34.50 per share.

Open Offer Structure and Regulatory Framework

The mandatory open offer under SEBI (SAST) Regulations involves cash payment for the acquisition of equity shares. Srujan Alpha Capital Advisors LLP serves as the Manager to the Offer, facilitating the process through BSE Limited's acquisition window mechanism. The offer is being made under Regulation 3(1) and 4 of SEBI (SAST) Regulations, with SEBI's final observation letter dated February 26, 2026 incorporated into the Letter of Offer.

Committee Recommendation and Publication Details

The Committee of Independent Directors, comprising five independent directors, unanimously recommended the offer as fair and reasonable on March 11, 2026. The IDC determination was published on March 13, 2026, confirming compliance with SEBI pricing methodology where the offer price of ₹34.50 aligns with regulatory parameters. The pre-offer advertisement was published in Financial Express (English), Jansatta (Hindi), and Pratahkal (Marathi) newspapers on March 16, 2026.

Revised Schedule and Tendering Process

The Letter of Offer dated March 6, 2026, was dispatched electronically on March 7, 2026, and physically on March 10, 2026, to all eligible shareholders as of the Identified Date of March 2, 2026. The tendering period has been scheduled from March 17 to April 2, 2026, with payment completion by April 20, 2026. Public shareholders holding equity shares in both physical and dematerialized form can participate through their respective brokers during the tendering period.

Documentation and Compliance

The Draft Letter of Offer was submitted to SEBI on January 2, 2026, with final observations received on February 26, 2026. All relevant documents including the Public Announcement dated December 18, 2025, Detailed Public Statement dated December 25, 2025, and Letter of Offer dated March 6, 2026, are available on SEBI, BSE, and Manager websites. No statutory approvals are required for completion of the open offer, and no competing offers have been received as of the advertisement date.