Solar Industries India Limited announced that its wholly owned subsidiary, Solar Explochem Limited, has entered into a Share Purchase Agreement to acquire 100% of the issued and paid-up equity share capital of Sivasakthi Industrial Explosives Private Limited.

The transaction involves a total cash consideration of ₹115.02 crore. The acquisition is subject to terms and conditions mutually agreed upon by the parties, with an indicative completion period of 12 months from the date of signing.

Deal Structure and Consideration

The agreement was signed on October 15, 2026. Solar Explochem will acquire full control over Sivasakthi, which operates in the explosives industry. The disclosure confirms that this transaction does not constitute a related party transaction, as neither the promoter nor the promoter group holds any interest in the target entity.

Key details of the acquisition are outlined below:

Target Company Profile

Sivasakthi Industrial Explosives Private Limited was incorporated in 2008. The company is engaged in the manufacture, production, processing, retailing, wholesaling, supply, distribution, and trading of all types of explosives for industrial mining and other purposes. The stated objective of the acquisition is business expansion within the explosives sector.

Financial History of Target

The filing discloses the turnover figures for Sivasakthi over the last three fiscal years. Notably, the target reported nil turnover for FY26, following a decline in revenue in the preceding year.

What the Numbers Show

A significant divergence exists between the acquisition price and the target's recent financial performance. The ₹115.02 crore consideration paid for 100% equity stands in stark contrast to the target's FY25 turnover of approximately ₹35 lakh and nil turnover in FY26. This valuation suggests that the deal is likely driven by strategic assets, such as licenses, infrastructure, or market access rights, rather than current revenue generation or profitability metrics disclosed in the filing.

Solar Industries India Limited has expanded its international footprint by incorporating a new step-down subsidiary, Solar Explochem Proprietary Limited, in the Republic of Botswana. The entity was incorporated on September 29, 2026, to facilitate the expansion of the company's explosives business operations in the region.

The new entity is held by Solar Overseas Mauritius Limited, a wholly owned subsidiary of Solar Industries India. This structure positions the Botswana entity as a step-down subsidiary of the listed company. The incorporation was reported to stock exchanges under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Investment Structure and Capital

The formation of Solar Explochem Proprietary Limited involves an initial capital subscription paid in cash. The total cost of subscription for the shares is USD 325,000. Upon incorporation, the listed entity holds a 65% shareholding or control interest in the new subsidiary.

The filing indicates that no specific governmental or regulatory approvals were required for the incorporation itself, categorized as "Not Applicable" in the disclosure annexure.

Subsidiary Details

The following table outlines the key parameters of the newly incorporated entity as disclosed in the regulatory filing:

Strategic Context

This move marks a continued effort by Solar Industries India to grow its presence in African markets through its Mauritius-based holding structure. By establishing a proprietary limited company in Botswana, the group aims to deepen its operational reach in the explosives sector within Southern Africa. The use of cash consideration for the initial subscription suggests a straightforward capital injection without complex share swaps or external equity dilution at this stage.