Shalimar paints is rumored to be in discussions with ICICI Venture for a possible majority stake sale to the latter.The PE major was working on tabling a possible offer valuing the company at around Rs 450 crore.The company, with three plants at Sikandrabad, Nashik and Howrah, has an annual capacity of around 43,000 tonnes.
When contacted, ICICI Venture declined to comment. Sandeep Sarda, executive director & CEO, Shalimar Paints, said: “If there is a proposal, we might examine it. But as of now, there is nothing before us. And we are unaware of any such developments.”
However,it is rumored that talks have taken place between ICICI Ventures and Shalimar on a possible deal. It is learnt that for the promoters, Jindals and Jhunjunwalas who have diversified interests, the paint business may not be core any longer, triggering a possible sale .
Recently, the company informed the exchanges it would undertake development of its real estate assets through a JV. Around 35% of the domestic paint market is still in the unorganised segment. Asian Paints is the leader with about 27% stake, while Berger and Nerolac are locked in the second slot with 12% each. ICI, in which Asian Paints is a stakeholder, follows with roughly 9% share.
Read more in The Economic Times article.
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