Shalimar Paints Limited Approves Investment in Hella Infra Market, Proposes Major Capital Restructuring

Shalimar Paints Limited Approves Investment in Hella Infra Market, Proposes Major Capital Restructuring​

Shalimar Paints Limited held a Board meeting on August 12, 2026, where it approved several strategic initiatives, including an investment proposal into Hella Infra Market Limited. The Board also sanctioned significant capital increases and various fundraising proposals designed to fuel future growth across the company’s operations.

A key focus of the board review was the potential merger and synergies between Shalimar Paints and Hella Infra Market Limited. The company approved a proposal for investment in equity shares and Non-Cumulative Non-Participating Compulsory Convertible Preference Shares (CCPS) of Hella Infra Market Limited, structured via a swap ratio based on valuation reports. Furthermore, the Board discussed maximizing synergies between the two entities, including exploring the possibility of unification at an appropriate stage, subject to requisite approvals.

Capital Structure and Fund Raising Initiatives​

The Board approved multiple proposals related to expanding capital and raising funds through equity issuance:

• Authorized Capital Increase: The company resolved to increase its Authorized Share Capital from ₹ 20,00,00,000 (Rupees Twenty crores) divided into 10,00,00,000 Equity Shares of ₹ 2 each, up to a limit of ₹ 600,00,00,000 (Rupees Six Hundred crores) divisible into 300,00,00,000 equity shares of ₹ 2 each.
• Preference Share Issue: The Board approved the addition of up to 200,00,00,000 Non-Cumulative Non-Participating Compulsory Convertible Preference Shares (CCPS) amounting to ₹ 400,00,00,000 (Rupees Four Hundred crores Only).
• Preferential Equity Issue: A proposal was approved for raising up to ₹ 1,05,86,41,680/- through the issue of up to 1,24,54,608 Equity Shares at an Issue Price of ₹ 85 per equity share.
• Non-Cash Equity Raise: The Board approved a proposal for raising funds (for consideration other than cash) amounting to ₹ 35,44,68,68,895/- through the issue of up to 41,70,21,987 Equity Shares at an Issue Price of ₹ 85 per equity share.
• CCPS Raise: A proposal was approved for raising funds (for consideration other than cash) amounting to ₹ 68,95,22,17,869/- through the issue of up to 81,12,02,664 CCPS at an Issue Price of ₹ 85 per equity share.
• QIP: The Board also approved a proposal for raising funds up to ₹ 1,000 crores through Qualified Institutions Placement (QIP).

Key Management Appointment​

The meeting addressed personnel matters, including the appointment of Mr. Kundan Sangwar as Chief Financial Officer of the Company.

Quarterly Financial Performance Review​

The board reviewed and approved the Unaudited Financial Results for the Quarter ended June 30, 2026 (Standalone and Consolidated). The company’s performance metrics across various periods are detailed below:

Financial Highlights (in ₹ Crores)

Consolidated Financial Highlights (in ₹ Crores)

Financial Status and Shares
The company's standalone unaudited financial results show that it incurred a net loss after tax of 20.78 crore for the quarter ended June 30, 2026, and holds accumulated losses of 7562.94 crore as at that date.

As of the meeting date, the company’s paid-up equity share capital stood at 16.74 crore (face value of ₹ 2 per share). The results also indicate a loss per share (Basic and Diluted) of (₹ 2.48) for the quarter ended June 30, 2026.

The Board approved notice convening both the Annual General Meeting and an Extraordinary General Meeting.

SHALPAINTS Stock Price Movement​

On Wednesday, shares of Shalimar Paints Limited slipped by 1.04% to settle at ₹82.9 following the day's trading. The equity witnessed a range between ₹82.5 and ₹85.89, with 111,104 shares recorded in turnover.