Shalimar Paints Eyes Acquisition of Infra.Market's Parent for ₹10,545 Cr

Introduction

In a significant development in the Indian startup ecosystem, Shalimar Paints is planning to acquire Hella Infra Market Ltd, the parent company of building materials unicorn Infra.Market, for a staggering ₹10,545 Cr. This move aims to consolidate Shalimar Paints' position in the building materials sector and potentially offer Infra.Market an alternative route to the public markets.

About the Companies

Shalimar Paints is a leading player in the paints industry with a strong legacy and governance framework. The company is eyeing this acquisition to create a listed building materials platform.

Infra.Market, founded in 2016 by Souvik Sengupta and Aaditya Sharda, is a prominent player in the construction materials sector. It has raised over $740 Mn from investors like Tiger Global, Accel, and Nexus Venture Partners.

Details of the Proposed Acquisition

Under the proposed deal, Shalimar Paints plans to issue up to 41.7 Cr equity shares worth ₹3,544.69 Cr and 81.12 Cr CCPS worth ₹6,895.22 Cr as non-cash consideration to Hella Infra Market’s shareholders. Additionally, Shalimar Paints will issue up to 1.25 Cr equity shares for cash to Infra.Market’s investors Hathor Corporate Advisors LLP, Plutus Capital Management LLP, and Pro Fin Capital Services Limited, worth ₹105.86 Cr.

The total proposed issuances aggregate ₹10,545.77 Cr. The securities would be issued at ₹85 apiece. The final swap ratio, terms governing the conversion of the CCPS, and the fully diluted shareholding of the listed company post-transaction remain undisclosed.

Financials and Market Impact

Infra.Market has reported a consolidated net profit of about ₹300-325 Cr in FY26, up from ₹220 Cr in FY25. Its revenue rose 7% YoY to nearly ₹20,000 Cr during the year. EBITDA stood at ₹1,750-1,800 Cr, with an EBITDA margin of 9%.

The acquisition, if approved, could significantly impact the market dynamics in the building materials sector, providing Shalimar Paints with a stronger foothold and potentially offering Infra.Market an alternative route to the public markets.

Future Prospects

The proposed transaction could lead to Infra.Market becoming an unlisted material subsidiary of Shalimar Paints. Additionally, the two companies are exploring a potential “unification” at a later stage, subject to applicable laws and requisite approvals.

This move comes as Infra.Market is preparing for an IPO, having received SEBI’s observations in January 2026. However, no changes to its IPO plans have been announced following the proposed Shalimar transaction.

FAQs

**Q: What is the proposed deal size for the acquisition? A: The proposed deal size is ₹10,545 Cr.

**Q: What will happen to Infra.Market after the acquisition? A: If the transaction goes through, Infra.Market may become an unlisted material subsidiary of Shalimar Paints.

**Q: Are there any other significant developments related to this acquisition? A: This is not the first transaction between Infra.Market and Shalimar Paints. In 2022, Hella Infra Market announced an investment of ₹270 Cr in Shalimar Paints.

Conclusion

Shalimar Paints’ proposed acquisition of Hella Infra Market Ltd could reshape the landscape of the building materials sector in India. This strategic move aims to create a listed building materials platform and potentially offer Infra.Market an alternative route to the public markets.

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