DCM Shriram Limited has informed the Exchange about Acquisition
DCMSHRIRAM · price
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DCM Shriram's board has approved definitive agreements to acquire 100% equity of Hindusthan Speciality Chemicals Limited (HSCL) for Rs. 375 crores in cash. HSCL operates in the Epoxy & Advanced Materials space with a manufacturing facility in Bharuch, Gujarat, located just 3.5 km from DCM Shriram's existing chemicals complex. The acquisition marks DCM Shriram's entry into the Epoxy & Advanced Materials segment as a downstream extension of its Epichlorohydrin (ECH) business, and builds on its earlier Rs. 1,000 crore commitment announced in February 2024. HSCL reported FY25 turnover of about Rs. 274 crores but has been loss-making, with a negative networth of Rs. (76.1) crores. The deal is expected to close by September 2025, subject to customary approvals and a special resolution from HUIL's shareholders (HSCL is currently a subsidiary of listed Hindusthan Urban Infrastructure Ltd).
This is a strategic, capacity-additive acquisition that strengthens DCM Shriram's chemicals portfolio and diversifies it into high-growth advanced materials (aerospace, EVs, renewables, defence). Near-term, the stock may react positively given the strategic fit, but the target is loss-making, so investors should watch for integration timelines and turnaround progress over the next 2-3 quarters.