Heubach Colorants India Limited has announced that its Committee of Independent Directors has issued recommendations regarding an open offer made by Sudarshan Europe B.V. and associated entities. The open offer, which targets public shareholders of Heubach Colorants India, involves Sudarshan Chemical Industries Limited, Sudarshan Switzerland HLD1 AG, and Sudarshan Switzerland HLD2 AG as persons acting in concert (PACs).

Key Details of the Announcement

• The recommendations were published in newspaper advertisements across three languages:

  • Financial Express (English - All Editions)
  • Jansatta (Hindi - All Editions)
  • Navshakti (Marathi - Mumbai Edition)

• The disclosure was made in compliance with regulatory requirements, including SEBI Listing Obligations and Takeover Regulations.

• Heubach Colorants India filed the disclosure with both BSE and NSE stock exchanges, where it trades under the scrip code 506390 and symbol HEUBACHIND, respectively.

Background of the Open Offer

The open offer is being made by Sudarshan Europe B.V. as the acquirer, along with the following persons acting in concert:

• Sudarshan Chemical Industries Limited (PAC-1)
• Sudarshan Switzerland HLD1 AG (formerly known as Heubach Holding Switzerland AG) (PAC-2)
• Sudarshan Switzerland HLD2 AG (formerly known as Heubach Ebito Chemiebeteiligungen AG) (PAC-3)

Regulatory Compliance

The company's disclosure adheres to the following regulations:

1. Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
2. Regulation 26(7) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011

Importance for Shareholders

The recommendations provided by the Committee of Independent Directors are crucial for public shareholders of Heubach Colorants India Limited. These insights can help shareholders make informed decisions regarding the open offer.

Next Steps

Shareholders and potential investors are advised to review the full recommendations published in the newspaper advertisements. The company's regulatory filings with BSE and NSE may provide additional details about the open offer and its potential impact on the company's future.

Market participants will be closely watching for any further announcements or updates from Heubach Colorants India Limited regarding this open offer.

Heubach Colorants Limited, a leading player in the colorants industry, has announced strong financial results for the first quarter. The company's performance showcases significant growth and improved profitability, reflecting its resilience in a competitive market.

Financial Highlights

Key Performance Drivers

The company's impressive growth was primarily driven by strong volume expansion across various segments. This robust performance indicates Heubach Colorants' ability to capitalize on market opportunities and meet growing demand for its products.

Operational Efficiency

Notably, Heubach Colorants demonstrated improved operational efficiency, with employee costs declining by 12.2% year-on-year to Rs 19.38 crore. This reduction in costs, coupled with revenue growth, contributed significantly to the company's enhanced profitability.

Management Changes

The company has undergone several key management changes in recent months:

• Mr. Sambit Roy was appointed as Managing Director in November 2024
• Mr. Jugal Sahu resigned from his position as Executive Director but continues to serve as Chief Financial Officer
• Mr. Abhijit Naik, Head of Operations, has tendered his resignation

Corporate Developments

Heubach Colorants has experienced a significant change in its ownership structure. Sudarshan Chemical Industries has acquired indirect control of the company through its subsidiary, Sudarshan Europe BV. This change may bring new strategic directions and synergies for the company.

Ongoing Review

The company disclosed that there is an ongoing review of an unauthorized asset transfer to a related party. Management expects that this review will not result in material adjustments to the financial results. However, this matter remains under scrutiny, with the company evaluating various legal options.

Looking Ahead

With its strong Q1 performance and recent corporate changes, Heubach Colorants India appears well-positioned for continued growth. The company's ability to expand margins and drive profitability amidst changing market dynamics demonstrates its resilience and adaptability.

Investors and stakeholders will likely keep a close watch on how the new management leverages these positive results to drive long-term value creation and navigate any challenges that may arise from the ongoing asset transfer review.

Note: All figures are in Indian Rupees (INR) unless otherwise stated.