Hella Infra Market has received approval from the Shalimar Paints board for a proposed stake swap, under which Hella Infra's existing holding in Shalimar Paints would be exchanged as part of a broader restructuring of the two entities. The move is aimed at simplifying the group structure and potentially enabling future unification.
The proposed transaction is strategically important for Hella Infra as it could help consolidate its paints-related operations and investments under a more integrated structure, improving operational alignment and reducing complexity within the group.
Hella Infra had acquired a majority stake in Shalimar Paints and has since been involved in its operational turnaround. Shalimar Paints reported positive EBITDA for FY26 for the first time since Hella Infra acquired majority control, supported by cost rationalisation and a stronger premium product mix.
Shalimar Paints has also acquired the painting services business from Hella Infra through its wholly owned subsidiary, indicating that the businesses are already being integrated operationally. The transaction was completed through a Business Transfer Agreement dated 1 July 2025.
For Hella Infra, the proposed restructuring could create greater strategic control over the paints ecosystem, while allowing the group to capture synergies across manufacturing, distribution and painting services. However, the final structure and benefits remain subject to regulatory and shareholder approvals.
