Shish Industries Limited, a listed entity on the BSE with Security Code 540693, has announced a strategic acquisition of a 65% equity stake in Shish Advanced Composites Private Limited, a Gujarat-based entity, for a total investment of ₹6.5 lakh. This move was approved by the Board of Directors at a meeting held on June 17, 2025, which commenced at 2:30 pm and concluded at 3:10 pm.

The acquisition involves the purchase of 65,000 equity shares at ₹10 per share, and will result in Shish Advanced Composites Pvt Ltd becoming a subsidiary of Shish Industries Limited.

Strategic Move into Advanced Composites

This acquisition signifies Shish Industries' diversification into the high-performance advanced composites sector, tapping into markets like aerospace, defence, electric mobility, automotive, and medical devices.

The company released a detailed disclosure as per SEBI requirements dated November 11, 2024, outlining the strategic rationale, financial particulars, and structural implications of the acquisition.

Highlights of the Acquisition

• Name of the Target Company: Shish Advanced Composites Private Limited

• CIN: U25999GJ2024PTC154044

• Authorised Capital: ₹15 lakh

• Paid-up Capital: ₹3.5 lakh

• Unaudited Net Worth (as on 31 March 2025): Negative ₹32.7 lakh

• FY 2024-25 Turnover: Nil (unaudited)

Nature and Rationale

The primary objective of this acquisition is to strengthen Shish Industries’ entry into the composite materials market, which is rapidly expanding globally, particularly in the segments of carbon fibre-reinforced components. These materials are gaining momentum due to their lightweight, high-strength, and energy-efficient properties, especially in electric vehicles, aerospace structures, and industrial applications.

By acquiring Shish Advanced Composites Pvt Ltd, Shish Industries seeks to leverage its own export and manufacturing capabilities along with the technological innovation of the new venture. The business aligns with India’s national priorities like Make in India and Atmanirbhar Bharat, and is aimed at enhancing the company’s long-term value proposition.

Not a Related Party Transaction

The company clarified that the acquisition does not fall under related party transactions, and the promoter/promoter group has no interest in the acquired entity. Furthermore, the acquisition is being done at arm’s length through cash consideration, not a share swap.

Key Financial and Regulatory Aspects

• Total Investment: ₹6,50,000

• Stake Acquired: 65% (65,000 equity shares)

• Pre-acquisition Shareholding: 0%

• Post-acquisition Shareholding: 65%

• Form of Consideration: Cash

• Expected Completion Timeline: By end of June 2025

• Regulatory Approvals Required: Not applicable

Details About Shish Advanced Composites Private Limited

Incorporated on August 2, 2024, Shish Advanced Composites Pvt Ltd is a newly established private limited company based in Mahuvej, Surat (Gujarat). It is positioned in the composite materials manufacturing sector, with a focus on:

• Design, development, and production of high-performance components

• Use of advanced materials like carbon, glass, Aramid fibres, prepregs, adhesives, honeycomb foams, and sandwich structures

• Targeting industries like aerospace, electric vehicles, medical devices, and defence

Although it has not commenced revenue-generating operations yet, the entity is expected to scale rapidly with capital infusion, technological tie-ups, and access to Shish Industries' existing infrastructure.

Strategic Synergies Expected

The acquisition is seen as a natural extension of Shish Industries’ portfolio, offering opportunities to:

• Broaden product offerings beyond conventional manufacturing

• Strengthen export capabilities with value-added composite components

• Leverage innovation and R&D to enhance operational efficiency

• Address global demand in the electric mobility and defence segments

• Reduce reliance on traditional product lines, creating multi-sectoral resilience

According to the board, this new business vertical will also allow Shish Industries to capture emerging markets for composite materials in India and abroad, backed by rising demand for energy-efficient and lightweight structural materials.

Chairman’s Statement

Satishkumar Dayabhai Maniya, Chairman and Managing Director of Shish Industries Limited (DIN: 02529191), signed off the BSE disclosure, stating that the board’s decision was unanimous and in line with the company’s vision for future growth and strategic diversification.

Forward Outlook

The announcement reflects Shish Industries’ commitment to expanding its technological capabilities and participating in next-generation industrial ecosystems. The move may also pave the way for future partnerships, joint ventures, or technological collaborations in the composites domain.

Investors and stakeholders are expected to keep a close watch on:

• How the integration unfolds post-June 2025

• Operational milestones of the new subsidiary

• Regulatory filings related to business commencement

• Future revenue generation and market capture in the composites space

The Upcoming IPOs in this week and coming weeks are Safe Enterprises Retail Fixtures, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel, ArisInfra Solutions, Influx Healthtech, Mayasheel Ventures, Eppeltone Engineers.

The Current active IPO are Oswal Pumps, Patil Automation, Samay Projects Services, Aten Papers, Monolithisch India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.