Japanese chemical giant AICA Kogyo announced it will purchase a 40% stake in Indian laminates maker Stylam Industries for about Rs 1,525 crore.
Deal overview
The transaction is split into two parts. Stylam promoters Pushpa Gupta, Dipti Gupta and Manav Gupta will sell roughly 27% of the company, while Jagdish, Saru and Nidhi Gupta will sell about 13%.
Share price reaction
After the announcement, Stylam’s shares slipped around 5%, trading at roughly Rs 2,185 each.
Transaction details
- Price per share: Rs 2,250.
- Total value: Rs 1,525 crore for 6.78 crore shares (40% of the company).
- The purchase will happen in several tranches.
Open offer to public shareholders
Following the stake purchase, AICA Kogyo will launch an open offer at Rs 2,250 per share, which is a 2% discount to the previous close of Rs 2,300.50.
Board composition after the deal
The new shareholders’ agreement sets the board size at a maximum of 15 directors. AICA Kogyo can nominate up to 8 directors (executive or non‑executive) and will recommend one independent director.
About the companies
- AICA Kogyo: Japan’s leading maker of high‑pressure laminates, adhesives, coatings and other building materials. It operates in Asia and North America and entered India in 2011 with the Sunmica and AICA brands.
- Stylam Industries: Based in Haryana, Stylam is one of India’s biggest exporters of decorative laminates and surfacing products. Its “Stylam” brand is sold across Europe, Asia and the Middle East.
What this means for investors
The acquisition brings a strong global player into Stylam’s ownership, which could boost technology sharing and market reach. However, the immediate share‑price dip shows some short‑term uncertainty. Investors should watch how the open offer is received and whether the new board structure leads to strategic changes.
Remember, this is perspective, not a prediction. Do your own research before making any investment decisions.