Suraj Industries board of directors has approved a strategic acquisition to increase its stake in Shri Gang Industries and Allied Products Limited. The board meeting resulted in the approval to acquire 1,35,000 equity shares of Shri Gang from Mr. Ritesh Gupta, who serves as Joint Managing Director and is a member of the promoter group.

Transaction Details

The acquisition represents a related party transaction that was reviewed and approved by the Audit Committee before being presented to the board for consideration. The transaction will be conducted on an arm's length basis with cash consideration.

The acquisition will increase Suraj Industries' stake in Shri Gang Industries from 19.31% to 20.02%. The acquisition price will be determined as the average of the opening and closing market prices of Shri Gang's equity shares as quoted on BSE Limited on the working day immediately preceding the transaction execution date.

About Shri Gang Industries

Shri Gang Industries operates in the alcoholic beverages and Extra Neutral Alcohol (ENA) manufacturing industry, positioning itself in the breweries and distilleries sector. The company has established a bottling plant for Indian Made Foreign Liquor (IMFL) and Country Liquor at Sandila, District Hardoi, Uttar Pradesh, which commenced commercial production in July 2020.

The company further enhanced its capabilities by commissioning a grain-based distillery unit in September 2022, diversifying its revenue streams and expanding production capabilities. Shri Gang has entered into strategic partnerships including an exclusive manufacturing arrangement with United Spirits Limited for producing prestigious IMFL brands and a long-term supply agreement for Extra Neutral Alcohol.

Financial Performance

Shri Gang's financial performance demonstrates solid operational results in the breweries and distilleries sector:

The company, incorporated on August 2, 1989, operates exclusively in India and has established itself as a key player in the alcoholic beverages manufacturing sector through its strategic partnerships with United Spirits Limited.

Regulatory Compliance

Apart from approvals required under the Companies Act, 2013, and SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, no other government or regulatory approval is required for this acquisition.

Strategic Objective

The primary objective of this acquisition is to further consolidate Suraj Industries' shareholding in Shri Gang Industries. This move strengthens Suraj Industries' position in its investment portfolio and increases its influence in a company that operates in the breweries and distilleries sector with established partnerships and operational performance.

Suraj Industries Ltd has successfully completed a significant acquisition, strengthening its position in the chemicals and fertilizers sector. The company has acquired 41,05,120 equity shares of Carya Chemicals & Fertilizers Private Limited (CARYA) from Sarth Agbev and Energy Private Limited, as per a recent corporate filing.

Transaction Details

The acquisition, which aligns with Suraj Industries' growth strategy, was executed at a price of Rs. 12.60 per share, amounting to a total consideration of Rs. 5,17,24,512. This strategic move has substantially increased Suraj Industries' ownership in CARYA.

Shareholding Impact

Following this transaction, Suraj Industries' stake in CARYA has seen a notable increase. The company's shareholding in CARYA now stands at 95.44% of its paid-up equity share capital, signifying a controlling interest in the entity.

Transaction Overview

Regulatory Compliance

The company has duly informed the BSE Limited about this development, adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This announcement follows previous intimations made by the company on July 28, August 26, and September 16, indicating a phased approach to this acquisition.

This strategic move by Suraj Industries appears to be part of a broader corporate strategy, potentially aimed at consolidating its position in the chemicals and fertilizers market. The significant increase in ownership of CARYA could provide Suraj Industries with greater control over operations and decision-making processes, potentially leading to improved synergies and operational efficiencies.