Proposed Acquisition of 100% stake in Tandhan Polyplast Limited
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Sanmitra Commercial Limited's board approved acquiring 100% of Tandhan Polyplast Limited (TPL), a West Bengal-based public company making plastic and polymer products such as tarpaulins and waterproofing materials. The deal is valued at about Rs. 44.61 crore and will be paid entirely through a share swap — Sanmitra will issue 2.97 crore new equity shares at Rs. 15 each to TPL's shareholders. TPL reported a standalone turnover of Rs. 167.8 crore in FY25, up from Rs. 131.9 crore in FY24 and Rs. 115.6 crore in FY23. Along with the acquisition, the board approved raising authorised share capital from Rs. 1.25 crore to Rs. 60 crore, several preferential allotments totalling nearly Rs. 127 crore, and increasing borrowing and investment limits to Rs. 500 crore. The transaction is expected to close within two months, subject to shareholder and exchange approvals.
This is a major pivot for Sanmitra, moving it into the plastic and polymer manufacturing space with a sizeable revenue base. Existing Sanmitra shareholders will face significant dilution as the share count multiplies many times over and new investors (largely the Jalan family, who run TPL) will own the majority of the expanded entity. The stock could see sharp moves once the deal closes, given the dramatic change in business profile and capital structure.