Birla Nu Limited Announces Major Promoter Share Transfer

Birlanu has announced a significant inter-se transfer of equity shares among its promoter group members. Chandrakant Birla is set to acquire 30.07 lakh equity shares, representing 39.89% of the company's total share capital, from nine promoter group entities. This major internal restructuring is scheduled for December 29, 2025.

Transaction Overview

The acquisition, being undertaken as part of an internal restructuring exercise, involves the following key details:

Parameter	Details
Total Shares to be Acquired	30,07,836 equity shares
Percentage of Share Capital	39.89%
Transaction Date	December 29, 2025
Price per Share	₹1,770.94
Total Transaction Value	₹532.68 crores

Selling Entities and Share Distribution

The shares are being acquired from nine promoter group entities, with Central India Industries Limited being the largest contributor:

Selling Entity	Shares	Percentage
Central India Industries Limited	14,06,634	18.65%
Shekhavati Investments and Traders Ltd	5,56,470	7.38%
Ashok Investment Corporation Ltd	3,61,743	4.80%
Amer Investments (Delhi) Limited	3,08,763	4.09%
Gwalior Finance Corporation Limited	2,94,560	3.91%
Hitaishi Investments Limited	67,066	0.89%
Hyderabad Agencies Pvt Ltd	4,100	0.05%
Universal Trading Company Limited	4,000	0.05%
Ranchi Enterprises and Properties Ltd	4,500	0.06%

Shareholding Changes

The transaction will significantly alter the shareholding pattern within the promoter group:

Stakeholder	Before Transaction	After Transaction
Chandrakant Birla	4,29,305 shares (5.68%)	34,37,141 shares (45.57%)
Combined Selling Entities	30,07,836 shares (39.89%)	0 shares (0.00%)

Regulatory Compliance

The transaction is being conducted under Regulation 10(1)(a)(ii) of the SEBI Takeover Regulations, which provides exemption from making an open offer for inter-se transfers among promoter group members. The acquirer has confirmed that the acquisition price will not exceed 25% of the volume weighted average market price of ₹1,770.94 calculated for the 60 trading days preceding the notice date.

Market Context

The shares will be acquired at a price determined based on the volume weighted average market price for 60 trading days, reflecting the frequently traded nature of Birlanu's equity shares. The company's equity share capital consists of 75,40,899 equity shares of ₹10.00 each, totaling ₹7.54 crores in paid-up capital.

This internal restructuring represents one of the larger promoter group reorganizations in recent times, consolidating significant shareholding under a single promoter entity while maintaining compliance with applicable regulatory requirements.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.80%	-0.79%	-8.79%	-30.42%	-38.95%	-24.04%

Birla Nu Limited , formerly known as HIL Limited, has announced its financial results for the second quarter of fiscal year 2026, showcasing resilience in a challenging market environment.

Key Financial Highlights

Revenue Growth: The company achieved a consolidated revenue of INR 810.00 crores in Q2FY26, marking a 5% year-on-year increase.
EBITDA Margin: A significant expansion of 330 basis points in EBITDA margin was reported, demonstrating improved operational efficiency.
Segment Performance:
- Walls segment showed strong performance with an 18% revenue growth.
- Pipes segment faced headwinds, resulting in an 11% revenue decline.

Strategic Acquisition

Birla Nu has completed the acquisition of Clean Coats Private Limited for INR 110.19 crores. This strategic move is expected to strengthen the company's position in the construction chemicals sector.

Segment-wise Performance

Segment	Revenue Growth (YoY)
Roofs	-5%
Walls	18%
Pipes	-11%
Floors	11%

Management Commentary

Akshat Seth, MD & CEO of Birla Nu, commented on the results: "Birla Nu's 'smart' performance in Q2 is headlined by a strong improvement in operating profitability. We grew our consolidated revenue by ~5% (YOY) to INR 810 cr with a 330 bps expansion in % EBITDA (YOY). This result has been achieved through prioritized action on profitability levers and a relentless sales push despite the market continuing to provide headwinds."

Market Challenges and Outlook

The company acknowledged that the demand scenario remains sluggish, with pricing remaining soft across all product categories. However, management expressed confidence in further improvements in profitability, citing ongoing initiatives including a comprehensive value enhancement exercise with BCG.

International Performance

Parador, the company's international subsidiary, delivered a strong performance with an 11% revenue growth year-on-year, despite challenging global macroeconomic conditions. Operating margins for Parador improved by 720 basis points YoY, reflecting the benefits of last year's restructuring and sustained cost discipline.

Future Initiatives

Birla Nu is on track with its new OPVC facility in Patna and an ambitious green-field project in Andhra Pradesh to produce Designer Boards and other products. The company plans several innovative product launches across categories for the remainder of the year, reinforcing its commitment to product leadership.

In conclusion, while facing market headwinds, Birla Nu has demonstrated its ability to improve profitability and execute strategic initiatives. The company's focus on accelerating growth across categories, enhancing customer engagement, and strengthening execution capabilities positions it to capture opportunities in an improving demand landscape.