We wish to inform that the Board of Directors of the Company, have decided to invest an amount of Rupees 6,50,000 towards acquisition of 65000 Equity Shares of Shish Advanced Composites ....
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Shish Industries Ltd's Board has approved the acquisition of 65,000 equity shares (65% stake) in Shish Advanced Composites Private Limited for Rs. 6.5 lakh at Rs. 10 per share, making it a subsidiary. The target company is a recently incorporated entity (August 2024) with nil turnover and a negative net worth of Rs. 32.70 lakh, focused on advanced composite materials like carbon fiber for aerospace, defense, EVs, and automotive sectors. The deal is an all-cash transaction expected to be completed by end of June 2025 and is not a related-party transaction. Management cites this as a strategic move to enter the high-performance composites segment and diversify revenue streams.
The acquisition is small in absolute value (Rs. 6.5 lakh) but strategically signals Shish Industries' entry into advanced composites, a high-growth sector. The target has no revenue and negative net worth, so near-term financial impact is negligible; long-term value depends on the subsidiary's ability to commercialise its products.