Shalimar Paints has scheduled an extraordinary general meeting (EGM) for September 11, 2026, to seek shareholder approval for a transformative acquisition of Hella Infra Market Limited (HIML). The proposed transaction values HIML at approximately ₹10,454 crore, executed through a combination of cash, equity shares, and compulsory convertible preference shares (CCPS).

The board of directors approved the deal structure on August 12, 2026, aiming to integrate Shalimar’s manufacturing heritage with HIML’s pan-India scale across ready-mix concrete, aggregates, steel, and tiles. The acquisition is expected to create a stronger platform to capitalize on India’s infrastructure growth story.

Deal Structure and Valuation

The total consideration for acquiring up to 40.59% stake in HIML on a fully diluted basis is split into three components:

All securities are priced at ₹85 per share/CCPS. This price is higher than the floor price of ₹82.50 determined by registered valuer Saksham Valuer Private Limited, which was based on the 10-day volume-weighted average price preceding the relevant date of August 12, 2026.

Capital Raise and QIP

In addition to the acquisition, the EGM will consider a Qualified Institutions Placement (QIP) of up to ₹1,000 crore. The proceeds from this QIP are earmarked for working capital, investment in subsidiaries, repayment of borrowings, capital expenditure, and general corporate purposes. A SEBI-registered monitoring agency will track the utilization of these funds.

What the Numbers Show

The financing structure reveals a heavy reliance on equity-linked instruments rather than immediate cash outflow. Of the total ₹10,546 crore valuation, only ₹105.9 crore (1%) is being raised via fresh cash infusion from non-promoters (Hathor Corporate Advisors LLP, Plutus Capital Management LLP, and Pro Fin Capital Services Ltd). The remaining ~₹10,440 crore is funded through share swaps with existing HIML shareholders. This suggests the promoters of HIML, including Aaditya Sharda and Souvik Sengupta, are retaining significant economic interest via the newly issued CCPS and equity, rather than exiting completely. The CCPS carry a negligible dividend rate of 0.001% and must convert into equity within 18 months, indicating a clear path toward full consolidation without immediate dilution pressure from dividend payouts.

Key Dates and Voting

• EGM Date: September 11, 2026, at 12:30 pm via Video Conference.
• E-voting Window: September 7, 2026, to September 10, 2026.
• Record Date: September 4, 2026.
• Scrutinizer: Mr. Ankush Agarwal, Partner at M/s. MAKS & CO., Company Secretaries.

The allotment of securities must be completed within 15 days of passing the special resolution, subject to regulatory approvals. The new equity shares and converted CCPS will rank pari passu with existing shares.

Shalimar Paints filed its Business Responsibility and Sustainability Report (BRSR) for the financial year ending March 31, 2026, with the Bombay Stock Exchange and National Stock Exchange on August 18, 2026. The filing, prepared on a standalone basis, outlines the company’s performance against the nine principles of the National Guidelines on Responsible Business Conduct (NGRBC).

The company reported a turnover of ₹5,661,658,161 and a net worth of ₹2,376,573,333 for FY26. Despite these figures, Shalimar Paints stated it does not fall under the mandatory Corporate Social Responsibility (CSR) obligations under Section 135 of the Companies Act, 2013.

Workforce and Governance

As of the end of FY26, the entity employed 581 permanent and non-permanent employees, with males constituting 95.53% of this group. Additionally, there were 479 workers, of whom 98.54% were male. The board comprises seven directors, including one female director (14.29%), while key management personnel includes one female member (50%).

The turnover rate for permanent employees stood at 48.02% in FY26, down from 51.02% in FY25. For permanent workers, the turnover rate was 26.27%, compared to 5.10% in the previous year. No differently abled employees or workers were recorded during the period.

Environmental Metrics

The company disclosed significant energy consumption data for FY26. Total energy consumed reached 18,140,863,159 kJ, comprising 208,056,960 kJ from renewable sources and 16,060,293,559 kJ from non-renewable sources. This resulted in an energy intensity per rupee of turnover of 3,20,416 kJ/₹, up from 2,00,000 kJ/₹ in FY25.

Water withdrawal totaled 25,741 kilolitres, primarily from groundwater (22,016 kL) and third-party sources (3,724 kL). Total water consumption was 25,065 kL, with water intensity per rupee of turnover decreasing to 0.44 kL/₹ from 1.11 kL/₹ in FY25.

Greenhouse gas emissions for Scope 1 and Scope 2 totaled 1,576.58 T CO2e (469.69 T CO2e for Scope 1 and 1,106.89 T CO2e for Scope 2). The emission intensity per rupee of turnover was 0.02 T CO2e/L INR, down from 0.04 T CO2e/L INR in FY25.

Waste Management and Safety

Total waste generated increased to 180.22 metric tonnes in FY26 from 27.22 metric tonnes in FY25. This included 29.45 metric tonnes of plastic waste, 54.97 metric tonnes of other hazardous waste, and 95.80 metric tonnes of other non-hazardous waste. Of the total waste generated, 4.88 metric tonnes were recycled, while 175.33 metric tonnes were disposed of through incineration and other operations.

Safety metrics showed a Lost Time Injury Frequency Rate (LTIFR) of 6.24 for employees and 14.36 for workers. There was one recordable work-related injury for employees and 19 for workers. No fatalities or high-consequence injuries were reported.

What the Numbers Show

The data reveals a divergence between waste generation volumes and recycling efforts. While total waste generated surged to 180.22 metric tonnes in FY26—more than six times the FY25 level—the volume of waste recycled dropped sharply to 4.88 metric tonnes from 64.51 metric tonnes. This indicates that the majority of the increased waste stream (approximately 97%) was directed toward disposal operations rather than recovery, highlighting a shift in waste management outcomes despite stable or improved resource intensity metrics like water usage.