Solar Industries India shares fell more than 9 per cent in early trade on Tuesday after the company announced a proposed Rs 12,951 crore acquisition of South Africa's Omnia Holdings, reversing gains after the stock hit a 52-week high.
The stock opened at Rs 22,320 and touched an intraday high of Rs 22,700 before falling to a low of Rs 20,565 on NSE.
Solar Industries' Rs 12,951 Crore Acquisition
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Solar SA Investments Proprietary Limited, a wholly owned step-down subsidiary of Solar Industries, has signed definitive agreements to acquire all outstanding shares of Omnia Holdings in an all-cash transaction valued at approximately US$1.355 billion, or Rs 12,951 crore.
The deal remains subject to customary closing conditions, including regulatory approvals and approval from Omnia shareholders.
Omnia is a South Africa-headquartered diversified group operating across mining and agriculture. It has a presence in 23 countries and serves customers in more than 40 countries through over 70 distribution centres.
For the financial year ended Mar. 31, 2026, Omnia reported revenue of about US$1.41 billion, equivalent to Rs 13,307 crore, and remained net cash positive.
What The Deal Means For Solar
Solar said the acquisition will significantly expand its manufacturing, distribution and operational capabilities across the Southern African Development Community region.
Omnia's mining business, BME, has expertise in open-cast mining, bulk explosives, electronic detonation systems, digital blasting solutions and mining chemicals. Its agriculture business also provides crop nutrition and biological solutions.
“The acquisition by Solar SA of Omnia will create most integrated global blasting platform that combines Omnia's vertically integrated manufacturing capabilities, ammonium nitrate production, surface bulk explosives and blasting services with Solar Group's leadership in explosives, initiating systems and advanced blasting technologies. Together, the combined group will be positioned to offer most integrated blasting solutions, creating meaningful competitive advantages through enhanced supply security, greater economies of scale, technology differentiation, access to key mining markets across Africa and other international geographies, and deeper customer engagement,” said Managing Director and Chief Executive Officer of Solar Group, Manish Nuwal.
Furthermore, the company stated in the exchange filing that it expects the transaction to improve supply-chain resilience, product integration and operational efficiencies. Solar said the benefits of the expanded footprint are expected to become increasingly visible from fiscal 2028, with revenue attributable to Africa's mining market expected to grow multi-fold.
Solar Industries Stock Price Movement
Despite this key development, the stock came under pressure today, shedding over 8% in the early hours; however, the stock has rallied close to 70% in 2026 itself and remained up over a prolonged period.
Currently, the stock is trading at a price-to-earnings multiple of 98.36 times, with a market cap of Rs 1,84,011.5 crore.
Around 10.15 am, the stock was trading at Rs 20,350 apiece on NSE, losing 8.84% from its previous close at Rs 22,290.
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