Stylam Industries shares took a notable dip today following the announcement of a significant stake sale to Japan’s AICA Kogyo. The news has stirred attention in the stock market today, reflecting a key development in the decorative laminates and surfacing products sector.
Market Performance
- Stylam Industries shares fell 5%, settling at Rs 2,185 per share in afternoon trade.
- The decline follows the announcement of Japan’s AICA Kogyo acquiring a 40% stake in the company.
- The open offer to public shareholders comes at a 2% discount to the previous closing price of Rs 2,300.50 per share.
Investors reacted swiftly to the news, marking today as a notable session for Stylam Industries on the stock exchange.
Main News: Stake Acquisition by AICA Kogyo
Stylam Industries announced on December 26 that AICA Kogyo, a leading Japanese conglomerate, will acquire a 40% stake in the company. The total transaction is valued at Rs 1,525 crore.
Key details of the stake sale:
- Promoters’ Sale: Pushpa Gupta, Dipti Gupta, and Manav Gupta will sell 45.97 lakh shares, representing 27.12% stake, in two tranches.
- Other Shareholders’ Sale: Jagdish Gupta, Saru Gupta, and Nidhi Gupta will sell 21.82 lakh shares, representing 12.88% stake, in two tranches.
- Transaction Price: Rs 2,250 per share.
- Total Shares for Sale: 6,779 crore shares, combining for the 40% total stake.
Post-acquisition, an open offer will be made to public shareholders to purchase additional shares at the set price, following regulatory norms.
Company Details
AICA Kogyo Overview
AICA Kogyo is a Japanese leader in chemical and building materials, specializing in:
- High-pressure laminates
- Adhesives and coatings
- Construction materials
Global presence includes manufacturing bases across Asia and North America. The company has been active in India since 2011, through AICA Laminates India Pvt. Ltd., marketing decorative laminates under the ‘Sunmica’ and ‘AICA’ brands.
Stylam Industries Overview
Haryana-based Stylam Industries is among India’s largest exporters of decorative laminates. Its product range includes:
- High-pressure laminates
- Exterior cladding
- Architectural materials under the ‘Stylam’ brand
Stylam has a strong international footprint, exporting to Europe, Asia, and West Asia, positioning it as a key player in the global laminates market.
Shareholders’ Agreement and Board Structure
The parties involved in the transaction have entered into a shareholders’ agreement, which outlines board supervision after the stake transfer:
- The board will be composed of up to 15 directors.
- AICA Kogyo can nominate up to 8 directors, both executive and non-executive (non-independent)
- AICA can also recommend one independent director to the board
This framework ensures structured governance and smooth integration of the new stakeholder into the company’s decision-making process.
Summary
Stylam Industries shares experienced a 5% drop in response to AICA Kogyo’s 40% stake acquisition. The total transaction is pegged at Rs 1,525 crore, with shares sold in two tranches by promoters and key shareholders.
The move strengthens the collaboration between an established Japanese materials conglomerate and one of India’s leading decorative laminates exporters. For market watchers and investors, today marks an important development reflecting cross-border investments and shareholder restructuring in India’s decorative materials sector.
Source: Moneycontrol
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