Shlokka Dyes Limited company name has approved the acquisition of the entire business undertaking of Equinox Impex (EI) on a slump sale basis for an aggregate cash consideration of ₹3,67,49,248.90. The Board of Directors ratified the deal at a meeting held on July 31, 2026, marking a strategic move to integrate EI’s export trading functions with Shlokka’s existing manufacturing operations in synthetic organic dyes. This consolidation is expected to enhance operational synergies, expand market access, and eliminate duplication of administrative functions between the two entities.

The transaction is structured as a related party transaction since EI is a sole proprietorship concern owned by Mr. Vaibhav Pravinchandra Shah, who serves as the Managing Director of Shlokka Dyes Limited. The total consideration comprises ₹2,23,24,031.81 towards the business undertaking excluding the trademark and ₹1,44,25,217.09 towards the trademark. The valuation was determined on an arm’s length basis using independent reports from Mr. Abhishek Chhajed, an IBBI Registered Valuer. The deal does not require shareholder approval as it falls below the materiality thresholds prescribed under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Rule 15(3) of the Companies (Meetings of Board and its Powers) Rules, 2014.

Equinox Impex is engaged in the manufacturing, processing, and export of synthetic organic dyes and allied chemical products to customers in India and abroad. The entity reported a turnover of ₹47.01 crore in FY26, down from ₹75.69 crore in FY25 and ₹57.20 crore in FY24. Despite the fluctuation in turnover, EI maintained consistent profitability, with Profit After Tax (PAT) ranging between ₹0.27 crore and ₹0.34 crore over the last three fiscal years. The acquisition includes the transfer of all running operations, assets, liabilities, and the trademark "EQUINOX" (application no. 6661341 filed on October 9, 2024).

The primary objectives of the acquisition include achieving business synergy by integrating export trading with manufacturing, eliminating group conflict of interest by consolidating promoter group businesses under the listed entity, and improving operational efficiency. Management stated that the acquisition will bring EI’s existing export customer relationships directly under Shlokka Dyes, thereby strengthening the company’s export revenue base and geographic diversification. The transaction is expected to be earnings accretive and will not have a material adverse impact on the company’s financial position or risk profile.

Regulatory Compliance and Approval

The transaction was reviewed and approved by both the Audit Committee and the Board of Directors of Shlokka Dyes Limited. As per the disclosure made under Regulation 30 of the SEBI LODR Regulations, read with the SEBI Master Circular dated January 30, 2026, the value of the transaction (₹3.67 crore) is lower than 10% of the company’s standalone annual turnover for FY26 (₹81.94 crore) and also below 10% of the standalone net worth as of March 31, 2026 (₹85.36 crore). Consequently, the deal does not constitute a 'material related party transaction' requiring shareholder ratification under Section 188(1) of the Companies Act, 2013. No governmental or regulatory approvals are required for this acquisition. The completion of the transaction is expected within 30 days from the signing of the Business Transfer Agreement.

Shlokka Dyes Limited reported a net profit of ₹495.96 lakh for the financial year ended March 31, 2026, a decline from ₹1,004.20 lakh in the previous year. Revenue from operations for FY26 stood at ₹8,194.13 lakh, compared to ₹10,342.62 lakh in FY25. The board approved the audited standalone financial results for the half-year and financial year ended March 31, 2026, during a meeting held on May 27, 2026.

M/s Patel & Panchal, Chartered Accountants, the statutory auditors, issued an unmodified opinion on the financial results. However, the auditors drew attention to deviations and non-compliance in the utilization of funds raised through the Initial Public Offering (IPO). Specifically, issue proceeds aggregating to ₹1,256.83 lakh were utilized in excess of the allocation towards working capital requirements, and expenditures amounting to ₹55.75 lakh were incurred on items not specified in the objects of the issue. Shareholder approval for these material deviations had not been obtained as of the balance sheet date.

Financial Performance

The company's total income for FY26 was ₹8,289.81 lakh, down from ₹10,345.46 lakh in the prior year. Total expenses decreased to ₹7,643.75 lakh from ₹9,144.19 lakh. For the half-year ended March 31, 2026, the company reported a net profit of ₹348.26 lakh on revenue of ₹5,058.96 lakh.

IPO Fund Utilization

As of March 31, 2026, unutilized funds amounting to ₹389.18 lakh were outstanding. This includes ₹274.14 lakh lying in the Public Issue Account with Axis Bank, ₹15.04 lakh in a current account with State Bank of India, and ₹100.00 lakh outstanding or pending recovery. The status of investor complaints for the half-year ended March 31, 2026, showed that all 6 complaints received during the period were resolved.