Suraj Industries Limited (SIL) has unveiled plans for a significant rights issue and an increase in its stake in its subsidiary, Carya Chemicals & Fertilizers Private Limited (Carya). These strategic moves were approved by the company's Board of Directors on September 16, 2025.

Rights Issue Details

SIL's Board has approved a rights issue of partly paid-up equity shares to raise up to ₹120.00 crore. The issue will be offered to eligible shareholders as of a yet-to-be-announced record date. Specific terms, including the issue price, rights entitlement ratio, and payment schedule, will be determined by the company's Rights Issue Committee.

Increased Stake in Carya Chemicals & Fertilizers

Alongside the rights issue, SIL has decided to increase its shareholding in its subsidiary, Carya Chemicals & Fertilizers Private Limited. The company plans to acquire:

• 22,73,234 equity shares from Suraj Prakash Gupta for ₹2,86,42,749
• 41,05,120 equity shares from Sarth Agbev and Energy Private Limited for ₹5,17,24,512

These acquisitions, totaling ₹8,03,67,261, will be made at ₹12.60 per share, based on a valuation report by Corporate Professionals Valuation Services Private Limited. Upon completion, SIL's stake in Carya will increase from 85.75% to 95.44%.

About Carya Chemicals & Fertilizers

Carya, incorporated in 2013, operates in the distillery sector. The company recently commenced operations of a bottling plant for Indian Made Foreign Liquor and Country Liquor in April 2025. It is also in the process of setting up a distillery for the manufacture of Extra Neutral Alcohol.

Strategic Implications

The rights issue aims to strengthen SIL's financial position, while the increased stake in Carya aligns with the company's strategy to consolidate its position in the liquor manufacturing sector. These moves come as Carya expands its operations, having recently started its bottling plant and with a distillery unit under construction.

SIL expects to complete the share acquisitions within six months, subject to necessary approvals and conditions.

Investors and shareholders should await further details on the rights issue terms and record date, which will be announced in due course.

Suraj Industries Limited has announced significant strategic moves to strengthen its position in the distillery business and raise capital for future growth. The company's board of directors has approved two key decisions: an acquisition to increase its stake in Carya Chemicals and Fertilizers Private Limited, and a rights issue to raise funds.

Acquisition of Additional Stake in Carya Chemicals

Suraj Industries has decided to acquire 63,78,354 equity shares of Carya Chemicals and Fertilizers Private Limited for a total consideration of Rs 8.04 crore. This acquisition will be executed in two parts:

1. 22,73,234 shares from Mr. Suraj Prakash Gupta for Rs 2.86 crore
2. 41,05,120 shares from Sarth Agbev and Energy Private Limited for Rs 5.17 crore

The acquisition price is set at Rs 12.60 per share, based on a valuation report by Corporate Professionals Valuation Services Private Limited. This strategic move will increase Suraj Industries' stake in Carya from 85.75% to 95.44%, further consolidating its control over the subsidiary.

Rights Issue Approval

In a parallel development, the board has approved a rights issue of partly paid-up equity shares to raise up to Rs 120.00 crore. The company plans to offer these shares to eligible shareholders, with the record date to be announced later. A Rights Issue Committee has been authorized to decide on the terms and conditions of the issue, including the issue size, price, and entitlement ratio.

About Carya Chemicals and Fertilizers

Carya Chemicals, incorporated in May 2013, operates in the distillery business. The company recently commenced operations of its bottling plant for Indian Made Foreign Liquor and Country Liquor. Additionally, Carya is in the process of setting up a distillery for the manufacture of Extra Neutral Alcohol.

Financial Implications

The acquisition is expected to be completed within six months from the execution of the Share Purchase Agreement. It's worth noting that Carya reported nil turnover for the previous financial year, as it only began commercial operations recently.

Regulatory Compliance

Both the acquisition and the rights issue have been approved in compliance with SEBI regulations. The related party transactions involved in the acquisition were previously approved by Suraj Industries' shareholders at the 33rd Annual General Meeting.

These strategic decisions reflect Suraj Industries' commitment to expanding its presence in the distillery sector while also strengthening its capital base for future growth initiatives.