Pidilite Industries , a leading adhesives manufacturer, has announced plans to invest up to ₹34 crore in Imagimake Play Solutions Private Limited, a company specializing in educational toys and games. This strategic move aims to strengthen Pidilite's presence in adjacent business sectors.

Investment Details

The investment will be made through Pidilite Ventures Pvt. Ltd. (PVPL), a wholly-owned subsidiary of Pidilite Industries. The transaction involves:

• Subscribing to Compulsorily Convertible Preference Shares (CCPS)
• Acquiring equity shares from certain existing shareholders of Imagimake

Upon completion, Pidilite's aggregate shareholding in Imagimake is expected to not exceed 26.15% on a fully diluted basis.

About Imagimake Play Solutions

Imagimake Play Solutions is a young and growing company in the educational toys and games sector. Here are some key details about the company:

Investment Rationale

Pidilite Industries' decision to invest in Imagimake Play Solutions aligns with its strategy to explore and invest in adjacent business areas. The educational toys and games sector represents a complementary market to Pidilite's core adhesives business, potentially offering synergies in product development and distribution.

Transaction Details

• The investment is not classified as a related party transaction.
• The deal is expected to be completed on October 17, 2025.
• The investment will be made in cash at a mutually agreed pre-money enterprise valuation.
• No governmental or regulatory approvals are required for this acquisition.

This strategic investment by Pidilite Industries in Imagimake Play Solutions demonstrates the company's commitment to diversifying its portfolio and tapping into the growing educational toys and games market. As Imagimake continues to show strong growth in its turnover year-on-year, this partnership could potentially accelerate its expansion while providing Pidilite with a foothold in a promising adjacent sector.

Pidilite Industries , a leading adhesives manufacturer, saw its shares undergo a significant price adjustment following the implementation of a 1:1 bonus issue. The stock price moved from Rs 3,037.75 to Rs 1,493.35, reflecting an apparent 51% decline that was actually a result of the bonus share distribution.

Bonus Issue Details

Pidilite Industries declared a bonus issue, offering shareholders one additional share for every share held. The record date for this corporate action was set as September 23, with investors needing to purchase shares by September 22 to qualify for the bonus shares.

Impact on Share Price

The sharp drop in share price is a direct consequence of the bonus issue implementation, effectively doubling the number of outstanding shares while halving the price per share. This adjustment ensures that the overall market capitalization of the company remains unchanged.

Trading Activity

As of 10:30 AM on the day of the announcement, Pidilite's stock was trading 1.5% lower at Rs 1,496.25, indicating some market reaction to the bonus issue implementation.

Historical Context

This bonus issue marks Pidilite's first such corporate action since March 2010. The company's decision to issue bonus shares is typically aimed at enhancing retail participation and improving stock liquidity.

Recent Stock Performance

Despite the recent price adjustment, Pidilite's stock has shown mixed performance over different time frames:

Investor Implications

The bonus issue effectively rewards existing shareholders by increasing their number of shares without requiring additional investment. While the per-share price has adjusted downward, the total value of an investor's holding remains unchanged, barring normal market fluctuations.

Investors and market participants are advised to take note of this corporate action when evaluating Pidilite's stock price movements and historical data to ensure accurate comparisons.