Shine Fashions (India) Limited has announced board approval for the strategic acquisition of SKS Textiles Limited (In Liquidation) for ₹12.61 crores, following a board meeting held on January 8, 2026. The acquisition will be executed through the Insolvency and Bankruptcy Code (IBC) process, subject to applicable statutory, regulatory, and judicial approvals.

Strategic Acquisition Details

The board has approved participation in acquiring SKS Textiles Limited as a going concern with a view to long-term value creation for the company and its stakeholders. The acquisition is designed to achieve strategic synergies and expand Shine Fashions' footprint in the textile sector.

Target Company Profile

SKS Textiles Limited, incorporated on October 20, 1997, operates in the textile manufacturing and trading segment with specialization in natural and man-made fibers. The company's manufacturing unit is located in Bhiwandi, Maharashtra, with registered office in Mumbai.

Product Portfolio and Operations

The target entity specializes in manufacturing grey fabrics and finished fabrics for shirting and suiting. Core products include 100% Cotton (Lycra and Non-Lycra), Giza, Supima, Blended Cotton Suiting, Polyester Viscose, and Terry Rayon. The company previously marketed products under brand names Pierricarrlo, Cotbelly's, and Earthen Belly, serving major corporate clients including Raymond, Arvind, Siyaram's, and Digjam.

Strategic Rationale and Expected Benefits

The acquisition is intended to broaden textile capabilities and diversify the company's product portfolio. Management anticipates that this integration will unlock significant economies of scale, enhance operational capabilities, and strengthen competitive positioning in the fabric industry. The target's operations are aligned with Shine Fashions' long-term vision for market leadership in the textile sector.

Regulatory Approvals and Compliance

The transaction requires multiple regulatory approvals and compliance measures as outlined in the company's disclosure under Regulation 30 of SEBI LODR Regulations.

Funding Arrangements

The board also approved obtaining unsecured loans from directors and promoters to fulfill urgent fund requirements. The transaction does not fall within related party transactions, as promoters and group companies have no interest in the target entity, ensuring the deal is conducted at arm's length.

The meeting was formally concluded with proper documentation signed by Anish Anil Mehta, Managing Director (DIN: 08560153), ensuring full regulatory compliance and transparency for stakeholders.

Shine Fashions (India) Limited has received an official clarification from its promoter regarding the recent disposal of equity shares, following mandatory disclosure requirements under SEBI regulations. Managing Director Anish Anil Mehta provided formal communication to BSE on January 5, clarifying the strategic purpose behind his share disposal transaction.

Share Disposal Transaction Details

Anish Anil Mehta, who serves as both Managing Director and promoter of the company, disposed of 1,12,000 equity shares through open market transactions on BSE's SME platform on January 2. The disposal was executed in compliance with Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Official Clarification Letter

In a formal communication dated January 5, Mehta informed BSE that the funds mobilized through the share disposal will be reinvested directly into the company. The promoter specifically stated that funds obtained by him or any other member of the promoter group through disposal of shares shall be introduced in the company to meet urgent business needs of Shine Fashions (India) Limited.

Impact on Shareholding Pattern

The transaction resulted in a reduction of Mehta's stake across both total share capital and diluted share capital calculations. Despite the disposal, the promoter maintains a substantial shareholding position in the company.

Regulatory Compliance and Company Information

The disclosure was made pursuant to Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company continues to maintain its listing on BSE's SME platform with full regulatory compliance.

The promoter confirmed that no shares were encumbered through pledge, lien, or non-disposal undertaking, and no voting rights were held otherwise than by shares. This formal clarification demonstrates transparency in corporate governance and reinforces the promoter's commitment to the company's operational requirements and growth initiatives.