Shalimar Paints to Raise ₹1059 Cr via Preferential Issue, Appoints New CFO
Shalimar Paints Limited approved its Q1 FY27 results and appointed Mr. Kundan Sangwar as CFO. The company will increase authorized capital to ₹600 crore and raise substantial funds through preferential issues totaling ₹105.86 crore (equity), ₹3,544.69 crore (equity for non-cash consideration), ₹6,895.22 crore (CCPS for non-cash consideration), and a ₹1,000 crore QIP. An investment in Hella Infra Market Limited was also approved.
The substantial capital raising and strategic investment plans are expected to have a significant impact on the company's financial structure and future growth.
The appointment of a new CFO, approval of financial results, and significant fund-raising plans indicate positive future prospects for the company.
Shalimar Paints Limited announced a series of significant corporate actions following its Board Meeting on August 12, 2026.
The company approved the Unaudited Financial Results (Standalone and Consolidated) for the quarter ended June 30, 2026. A key personnel change was the appointment of Mr. Kundan Sangwar as the new Chief Financial Officer, bringing over 18 years of experience in corporate finance and strategic financial management.
The Board also approved a substantial increase in the authorized share capital from ₹20 crore to ₹600 crore, which includes the addition of Non-Cumulative Non-Participating Compulsory Convertible Preference Shares (CCPS). This move is aimed at facilitating significant fund-raising activities.
Shalimar Paints plans to raise funds through multiple avenues: a preferential issue of up to 1,24,54,608 Equity Shares at ₹85 per share, aggregating to ₹105.86 crore. Additionally, a preferential issue of equity shares for consideration other than cash, amounting to ₹3,544.69 crore, and an issue of CCPS for consideration other than cash, aggregating to ₹6,895.22 crore, were approved. The company also proposed a Qualified Institutions Placement (QIP) of up to ₹1,000 crore.
Furthermore, Shalimar Paints will invest in Equity Shares and CCPS of Hella Infra Market Limited, potentially making it an unlisted material subsidiary. The company is also exploring strategic options, including unification, with Hella Infra Market Limited. The Board also approved proposals to increase the investment limit in securities and approved notices for the upcoming Annual General Meeting (AGM) and Extraordinary General Meeting (EGM).
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Shalimar Paints Limited filed this with the NSE as a statutory disclosure, categorised under equity fundraising. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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