NM Merchantiles Limited has announced a significant acquisition of equity shares in IOL Chemicals and Pharmaceuticals Limited through a regulatory disclosure filed under SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. The acquisition was completed through a merger transaction that transferred substantial shareholding from Vasudeva Commercials Limited.

Acquisition Details

The transaction involved the acquisition of 1,17,41,100 equity shares of IOL Chemicals and Pharmaceuticals Limited, representing a 4.00% increase in both total share capital and voting rights. The shares were transferred under a merger scheme approved by the Hon'ble Regional Director (NR) New Delhi through Order Numbers RDNR/233/AC1499296/2026/14531 and RDNR/233/AC1499296/2026/14530 dated 12.02.2026.

Merger Transaction Structure

The acquisition was executed through the merger of Vasudeva Commercials Limited with NM Merchantiles Limited. The shares of IOL Chemicals and Pharmaceuticals Limited previously held by Vasudeva Commercials were transferred to NM Merchantiles' account as part of this corporate restructuring. The effective date of share transfer was 05th March 2026.

Company Information

Regulatory Compliance

The disclosure was made in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. NM Merchantiles Limited, formerly known as NM Merchantiles Private Limited, filed the necessary documentation with both the National Stock Exchange and BSE Limited, where IOL Chemicals and Pharmaceuticals Limited shares are listed.

The transaction maintains the total equity share capital of IOL Chemicals and Pharmaceuticals Limited at Rs. 58,70,55,020, comprising 29,35,27,510 equity shares of Rs. 2 each. The acquisition strengthens NM Merchantiles' position as a promoter group entity in the target company, with no changes to the overall share capital structure of IOL Chemicals and Pharmaceuticals Limited.

IOL Chemicals & Pharmaceuticals has successfully completed strategic capacity expansions across its chemical manufacturing operations. The company enhanced its manufacturing capabilities through targeted investments in two key product lines, demonstrating its commitment to meeting growing market demand and optimizing operational efficiency.

Completed Capacity Expansions

The company has successfully implemented capacity improvements across two key manufacturing facilities with updated investment details:

Investment and Strategic Impact

The total capital expenditure of ₹57.1 million represents a significant investment in expanding the company's manufacturing capabilities. The ethyl acetate capacity enhancement represents a 20% increase from the previous production level, strengthening IOL Chemicals' position in this market segment.

Operational Performance

The expansion projects were undertaken based on strong operational fundamentals. The ethyl acetate facility was operating at 100% capacity utilization, while the acetic anhydride facility maintained above 90% utilization levels. The company cited sustained growth in demand from various sectors and improved margin realization through optimum operating leverage as key drivers for the expansion.

Market Position Enhancement

For acetic anhydride, the company aims to optimize both captive usage and merchant sales with the additional 7,000 MTPA capacity. These completed expansions enhance IOL Chemicals & Pharmaceuticals' competitive position in the chemical industry through strategic capital allocation and operational excellence, positioning the company for sustained growth in both product segments.