Shalimar Paints rallies over 5% on open offer by Hella Infra Market

Shalimar Paints share price: Shares of Shalimar Paints rallied as much as 5.19 per cent to hit a high of Rs 167 apiece on the BSE in the morning trade on Thursday, September 28, after the company received a copy of the public announcement dated September 27, 2023, "in relation to an open offer from/on behalf of Hella Infra Market Private Limited." The stock eventually ended at Rs 161.45, up 1.70 per cent on the BSE.

Hella Infra Market has made an open offer to acquire 2.17 crore shares (26 per cent equity) in the company. The price for the offer has been fixed at Rs 165 apiece. At the time of writing this report, the stock was trading over 3 per cent higher at Rs 163.80 on the BSE.

About Shalimar Paints

Shalimar Paint Color & Varnish Company was established in 1902 in Howrah, West Bengal by two Britishers - A N Turner and A N Wright. In the same year, the company set up a large-scale manufacturing plant in Howrah, the first such plant in entire Southeast Asia, as per the company's website. 

"India’s iconic structures like Rashtrapati Bhavan, Howrah Bridge, Vidyasagar Setu, and Salt Lake Stadium, continue to use Shalimar Paints. With access to high-end technology in the industrial coatings segment, Shalimar Paints pioneered aviation coatings, marine paints and the painting of thermal power plants," the company's website claims. 

India Paint Industry

According to a report by Mordor Intelligence, India paints and coatings market size is estimated at $8.78 billion in 2023 and is expected to reach $13.75 billion by 2028, growing at a CAGR of 9.38 per cent during the forecast period (2023–2028).

The COVID-19 outbreak had both short-term and long-term effects on several businesses, including a substantial impact on the construction industry, which is reflected in the market for paints and coatings throughout the country. As the government lifted limitations in 2021, the market began to grow steadily, the report adds.

• Growing demand from the construction industry, coupled with the recovering automotive industry, is driving the need for the market studied.
• On the flip side, fluctuation in raw material prices is estimated to hamper the market's growth.
• The use of nanotechnology in the paints and coatings industry is expected to offer various market growth opportunities during the forecast period, the report says further.

Shalimar Paints' share price

Shares of the company have gained around 10 per cent over the past three months. In comparison, the benchmark Nifty50 has risen 3.6 per cent, Trendlyne data show.