Japan materials maker to buy 53% of Stylam Ind in ₹2,030 crore deal

Stylam Industries Ltd’s promoters will sell up to 40% of their stake to the Japanese materials manufacturing major Aica Kogyo Co. in two tranches, Stylam announced in a regulatory notice.

The first promoter group, comprising Pushpa, Dipti and Manav Gupta, will be offloading a total of 27.12% stake, or 45.96 lakh shares, while the second group, made up of Jagdish, Nidhi and Saru Gupta, will be selling another 2.182 million shares, worth a 12.88% stake in the company.

Both groups will be selling their shares at ₹2,250 apiece, and in two tranches, which brings their total share sale value to ₹1,525 crore.

It is important to note that the first agreement has triggered a mandatory open offer as per regulatory guidelines, with Aica Kogyo bidding to acquire up to 26% of the public float. The second agreement, with Jagdish, Nidhi and Saru Gupta, is the flexible part of the deal. It is designed to fill the gap if, after the first agreement and subsequent open offer, the total shareholding remains below 40%.

The open offer, priced again at ₹2,250 per share, represents a 2% discount from the stock's closing price of ₹2,300.50 on Tuesday.

However, Aica has said that it will not go beyond a 53.12% stake in Stylam through this deal. The Japanese firm will use cash on hand, bank borrowings, or a combination of both to fund the ₹2,000 crore-plus deal.

Stake sale structure

The parties also entered into a shareholders’ agreement regarding the overall supervision of the board after the stake transfer. The board will comprise a maximum of 15 directors, with Aica Kogyo being able to nominate up to eight directors, each of whom shall be either an executive or a non-executive (non-independent) director and recommend one independent director to the board.

"Stylam is a leading manufacturer and distributor of HPL (High-Pressure Laminates) and related products in India. In addition to its strong presence in the Indian domestic market, Stylam has expanded to regions including Europe, the Middle East, North America, and Asia, and possesses a strong global presence, a solid earnings base, and sustainable growth potential," Aica Kogyo said in a regulatory release. "Through this acquisition, our group will further strengthen its production bases and sales network in the rapidly growing Indian market and expand our business from an Asia-centred overseas operation to a truly global scale," the release read.

Mint had reported earlier this month that Japanese companies have announced a record $359 billion in outbound and domestic mergers and acquisitions deals so far in 2025, up 54% on a year-on-year basis.

This has played out well for India, as Japanese firms are looking beyond China for their capital allocation.

Just last week, financial powerhouse Mitsubishi UFJ Financial Group committed nearly ₹40,000 crore for a 20% stake in Shriram Finance Ltd, India's second-ranked non-banking finance company by assets managed. It is the largest foreign direct investment in an Indian financial services company to date.

In December, Mizuho Financial Group Inc. reached an agreement to acquire a controlling stake in Avendus Capital, an investment bank backed by KKR & Co. In September, Sumitomo Mitsui Financial Group became the largest shareholder in Yes Bank Ltd.

Elsewhere, in the industrial sector, JFE Steel Corp. announced that it would acquire a 50% stake in Bhushan Power & Steel Ltd., a unit of its long-term partner, JSW Steel Ltd.