Shalimar Paints share price jumped 5% to hit upper circuit in trade at Rs 87.04 level after the board of directors approved a reverse merger with B2B building materials platform Infra.Market.
The merger will make way for Infra.Market to enter the public markets through the listed paints maker. The proposed plan outlined an investment in Hella Infra Market, the parent of Infra.Market, through a share swap.
Shareholders of Hella Infra Market will receive shares and compulsorily convertible preference shares (CCPS) of Shalimar Paints as consideration.
Subsequently, the Tiger Global-backed company could become an unlisted material subsidiary of Shalimar Paints, as per the company's official release.
Hella Infra Market, which counts investors such as Tiger Global among its backers, was last valued at close to Rs 25,000 crore in the private market. Infra.Market operates a technology-enabled building materials platform spanning ready-mix concrete, aggregates, steel, tiles and other construction products.
The transaction, approved by Shalimar Paints' board on August 12, is subject to shareholder and regulatory approvals.
Additionally, Shalimar's board has also approved a qualified institutional fundraise of up to Rs 1,000 crore.
Share price history
The shares have risen 41.18% year-to-date, and 21.68% in the last 12 months.
Shalimar Paints Q1
Shalimar Paints' consolidated revenue from operations declined 10.9% yoy to Rs 137.72 crore in Q1 FY27 from Rs 154.56 crore a year ago. The company's net loss widened to Rs 21.26 crore from Rs 16.77 crore in the year-ago quarter, while the loss stood at Rs 7.39 crore in Q4 FY26.
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