Key Event
Fine Organic Industries Limited executed Share Transfer Agreements (STAs) on September 2, 2026 with existing shareholders of Oleofine Organics SDN. BHD. to acquire 80% equity stake in the Malaysian company.
Target Company Details
- Name: Oleofine Organics SDN. BHD. (OFM)
- Incorporation: August 19, 1988 in Malaysia
- Business: Specialty chemicals
- Paid-up Share Capital: 10,00,000 Malaysian Ringgit (RM) divided into 10,00,000 Equity Shares of RM 1 each
- Net Worth (as at January 31, 2026): RM 3,42,45,075 (equivalent to INR 79.65 crores)
Financial Performance of Target Company
- FY26 (ended Jan 31, 2026): Turnover RM 23,287,742 (equivalent to INR 54.17 crores)
- FY25 (ended Jan 31, 2025): Turnover RM 2,29,25,390 (equivalent to INR 45.19 crores)
- FY24 (ended Jan 31, 2024): Turnover RM 2,76,15,137 (equivalent to INR 48.55 crores)
Transaction Details
- Percentage Acquired: 80% equity stake
- Breakdown: 50% acquired from Smoothex Chemicals Private Limited (related party), 30% acquired from other unrelated existing shareholders
- Cost of Acquisition: Aggregate cost up to RM 3,42,08,000 (equivalent to approximately INR 80.28 crores based on exchange rate prevailing on transaction date) plus applicable transaction costs
- Consideration: Cash
- Timeline: Completion shall take place upon fulfilment of conditions precedent in accordance with STAs terms
Related Party Aspects
- The transaction constitutes a related party transaction to the extent of shares acquired from Smoothex Chemicals Private Limited
- Smoothex is a Promoter Group entity of Fine Organic Industries Limited and an existing shareholder of OFM
- Mr. Mukesh Shah (Whole Time Director and Chairman) and Mr. Jayen Shah (Managing Director) of Fine Organic are Directors and Members of Smoothex
- Mr. Tushar Shah (Whole Time Director and CEO) of Fine Organic is a Member of Smoothex
- The transaction will be carried out on an arm's length basis
Strategic Rationale
- The transaction aligns with the Company's growth strategy
- OFM's business is within the main business line of Fine Organic Industries Limited
Regulatory Approvals
- No governmental or regulatory approvals required for the acquisition
Additional Information
- Disclosure made pursuant to SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026
- Information also available on company website: https://www.fineorganics.com/
- Signed by Pooja Lohor, Company Secretary and Compliance Officer (Membership No. A28397)
Exchange rates used for conversions are as of the closing of the relevant financial year of OFM
#FineOrganic #OleofineOrganics #SEBIRegulation30 #M&A #RelatedPartyTransaction #Neutral