Announcement under Regulation 30(LODR), 2015- Acquisition
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Suraj Industries' board has approved buying 56,25,400 equity shares (50.03%) of VRV Foods Limited from promoter group entities at Rs. 66 per share, totalling about Rs. 37.13 crore in cash. Post-deal, VRV Foods will become a subsidiary of Suraj Industries, adding a country liquor manufacturing and bottling business in Himachal Pradesh with an estimated 32% market share and FY25 turnover of Rs. 122.90 crore (PAT Rs. 3.16 crore). This is a related party transaction requiring shareholder approval at an EGM scheduled for March 6, 2026. Separately, the board approved a 15-year land rent agreement with subsidiary Carya Chemicals, raised inter-corporate loan limits from Rs. 350 crore to Rs. 500 crore, and altered the objects of its recent rights issue.
The deal will materially expand Suraj Industries' scale by adding a Rs. 120+ crore liquor business that is larger than the company's own turnover, likely boosting consolidated revenue. However, since the seller is the promoter group, retail investors should scrutinise the Rs. 66/share valuation and any potential open offer obligations arising from the change in subsidiary ownership.