APAR Industries Limited disclosed an acquisition by its wholly owned subsidiary Petroleum Specialities Pte Ltd. (PSPL) under SEBI Listing Regulations (Reg. 30) and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Acquisition Details

PSPL will acquire 70% of the equity interests in Hebei Jinghuan Cable Co. Ltd, a Limited Liability Company incorporated under the laws of People's Republic of China. The Equity Interest Transfer Agreement was executed on October 30, 2026.

Target Entity Information

  • Name: Hebei Jinghuan Cable Co. Ltd
  • Incorporation: Limited Liability Company under PRC laws
  • Turnover: NIL in FY2025
  • Business: Manufacturing of overhead conductors for power transmission and power distribution networks
  • Status: Currently non-operating entity that will operate as 100% exports focused enterprise

Transaction Structure

  • Percentage Acquired: 70% of equity interests
  • Consideration Type: Cash
  • Purchase Price: Equivalent to 70% of Net Asset Value of target entity as on transaction closing date
  • Estimated Price: RMB 24.85 million at Price-to-Book ratio of 1x
  • Capital Structure: RMB 24.85 million of total Paid-up Capital and RMB 35 million of total Registered Capital

Payment Terms

  • First installment: 30% of purchase price within 7 business days of Closing Date
  • Remaining 70% deposited in Escrow account
  • Balance 70% released from Escrow only after fulfillment of agreed conditions by Seller
  • Both parties to enter into Escrow account agreement with Escrow bank

Additional Rights

PSPL has call option but not obligation to acquire balance 30% from selling shareholder after 5 years based on valuation determined by mutually appointed third-party valuer under prescribed formula.

Regulatory Approvals

Necessary compliances/approvals required under Foreign Exchange Management Act, 1999 and Registration under State Administration of Foreign Exchange (SAFE), plus other pre/post closing obligations.

Related Party Status

Upon acquisition, Hebei will become step-down Wholly Owned Subsidiary of APAR Industries. Promoters/promoter group/group companies have no interest in Hebei except through PSPL's contribution.

Strategic Rationale

APAR Industries intends to diversify its manufacturing presence for aluminium overhead conductors across geographies through this acquisition.

Target Company Background

  • Assets: Mainly represented by Bank balances (95%), machinery & equipment (5%) as on closing date
  • Historical Turnover:
  • FY 2025: NIL
  • FY 2024: NIL
  • FY 2023: N.A.

The disclosure was signed by Sanjaya Kunder, Company Secretary, and is also available on the company's website at www.apar.com.

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