News Orders & Deals Alka India Limited Acquires Seven Food Companies in Strategic Expansion MoveAlka India Limited Acquires Seven Food Companies in Strategic Expansion Move
Alka India Limited's board approved the acquisition of seven food companies on February 27, 2026, through share swap agreements totaling 22,20,37,112 equity shares to be issued. The acquisitions span diverse agricultural segments including agro products, grains, pulses, and oilseeds, primarily targeting Gujarat markets with established distribution networks. All transactions are structured as non-cash share swaps subject to regulatory approvals and shareholder consent.
*this image is generated using AI for illustrative purposes only.
Alka India Limited has announced a significant expansion strategy through the acquisition of seven food companies, as approved by its board of directors on February 27, 2026. The comprehensive acquisition plan involves obtaining 100% stakes in companies operating across various agricultural and food segments through share swap agreements.
Major Acquisitions Overview
The company has entered into share purchase agreements for acquiring complete ownership of seven entities, all structured through preferential equity share allotments rather than cash transactions. The acquisitions span diverse food segments including agro products distribution, legumes, pulses, basmati rice, grains, beans, peas, and oilseeds.
| Company: | Business Segment: | Shares Acquired: | Equity Shares to be Issued: | Issue Price: |
|---|---|---|---|---|
| Mementos Foods Limited | Agro Products Distribution | 85,00,000 | 2,55,00,000 | Rs. 15/- |
| Satyarath Foods Private Limited | Legumes and Pulses | 32,27,070 | 64,54,140 | Rs. 60/- |
| Kostub Foods Private Limited | Basmati Rice | 61,33,250 | 3,06,66,250 | Rs. 15/- |
| Neurich Nutrifoods Limited | Grains | 89,00,791 | 4,45,03,955 | Rs. 15/- |
| Phycus Nutrifoods Limited | Beans | 98,00,791 | 4,90,03,955 | Rs. 15/- |
| Philimont Nutrifoods Limited | Peas | 97,83,100 | 4,89,15,500 | Rs. 15/- |
| Grefos International Private Limited | Agro-Products (Oilseeds) | 45,15,552 | 2,70,93,312 | Rs. 15/- |
Strategic Rationale
The acquisitions are designed to leverage established distribution networks and market presence across Gujarat. Mementos Foods Limited operates with a robust network of dealers and distributors throughout Gujarat, while Kostub Foods Private Limited has developed a network of over 2,000 dealers and distributors for basmati rice distribution in Northern Gujarat.
The target companies offer complementary product portfolios that align with Alka India Limited's existing operations in the agricultural sector. The acquisitions provide immediate access to established value chains and distribution networks, enabling faster market penetration compared to organic growth strategies.
Transaction Structure
All seven acquisitions follow a consistent share swap structure where Alka India Limited will issue equity shares of Re. 1/- face value in exchange for acquiring Rs. 10/- face value shares of the target companies. The total equity shares to be issued across all acquisitions amount to 22,20,37,112 shares.
| Transaction Details: | Specifications: |
|---|---|
| Total Companies Acquired: | 7 |
| Total Equity Shares to be Issued: | 22,20,37,112 |
| Face Value per Share: | Re. 1/- |
| Transaction Type: | Share Swap (Non-cash) |
| Completion Timeline: | 15 days from regulatory approvals |
Regulatory Compliance
The acquisitions have been structured in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transactions are subject to approval from regulatory and statutory authorities, as well as consent from the company's shareholders through special resolutions for preferential equity share issuance.
For three of the acquisitions (Mementos Foods, Satyarath Foods, and Kostub Foods), the promoter group has existing interests as directors and shareholders in the target companies. However, these transactions do not fall within the purview of related party transactions due to the preferential securities issuance structure.
Market Positioning
The acquired companies bring specialized expertise across different agricultural segments. Neurich Nutrifoods Limited focuses on grains with stable year-round demand, while Phycus Nutrifoods Limited operates in the beans segment including red beans, kidney beans, and soybeans. Philimont Nutrifoods Limited specializes in various pea varieties, and Grefos International Private Limited deals primarily in oilseeds.
The strategic acquisitions position Alka India Limited to capitalize on the consistent demand for agricultural products while expanding its geographical footprint and product portfolio across Gujarat's agricultural markets.
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