Infra.Market, a leading B2B online infra procurement platform in the country, is all set to invest Rs 270 crore in Shalimar Paints Ltd (SPL).
Hella Infra Market Private Limited, the parent company of Infra.Market, announced its proposal to make the investment through a combination of equity and debentures in Shalimar Paints.
The Indian paint manufacturing company, which has a legacy of over 120 years, said: “Shalimar Paints Limited is delighted to inform that Hella Infra Market Private Limited (the parent company of Infra.Market) has announced its proposal to invest Rs 270 crore through a combination of equity and debentures in the company, subject to shareholders’ and necessary regulatory approvals.”
Notably, EY (formerly Ernst & Young) acted as the exclusive financial advisor to Shalimar Paints.
According to a statement released by the company, the move will enable Shalimar Paints to strengthen its balance sheet, enhance its product offerings, and seed newer markets.
Shalimar is currently engaged in manufacturing and marketing decorative paints, industrial coatings, and allied product categories. The largest promoter of Shalimar Paints is the OP Jindal group.
Rajeev Uberoi, Chairman, SPL, said: “We are at the inflection point of exponential growth at Shalimar and partnering with Infra.Market will enable us to pursue both organic and inorganic growth opportunities within our existing and even newer product categories.”
Aaditya Sharda, co-founder of construction solutions firm Infra.Market said: “When we embarked on a journey to build Infra.Market, the vision was to create a horizontal construction material managed marketplace. The association with Shalimar is an important step as paint is an exciting category and Shalimar presents a unique opportunity for us to partner with an established vintage brand in this much-coveted category.”
In the recent past, other groups such as the Aditya Birla Group via Grasim Industries and JSW Group have also made an entry into the paints segment. The move highlights the growth prospects of the paint industry and its profitability in India.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
