UK Paints India to Acquire 14.48% Stake in Berger Paints Through Internal Restructuring

23 Dec 2025 , 01:26 PM

UK Paints India Private Limited, a key entity within the promoter group of Berger Paints India Limited, has informed stock exchanges that it will acquire an additional 14.48 percent stake in the company as part of an internal restructuring exercise.

The disclosure was made on Monday following a reorganisation of promoter shareholding within the group. The proposed acquisition involves the transfer of 16,87,88,138 equity shares from Jenson and Nicholson Asia Limited, which is a wholly owned subsidiary of the acquirer.

The share transfer is scheduled to take place on or after December 29, subject to the completion of procedural requirements. The transaction will be executed at nil consideration and forms part of a scheme of amalgamation. The scheme has received approvals from the National Company Law Tribunal as well as the Jersey Financial Services Commission.

The promoter entity stated that the restructuring is intended to rationalise and simplify the existing group structure by reducing the number of legal entities and jurisdictions involved.

The restructuring exercise is expected to lower regulatory compliance requirements and reduce administrative and operational costs for the group. It will also help consolidate monitoring functions and asset ownership at the level of the ultimate holding company.

The promoter group said the move will allow more efficient utilisation of capital and better resource management by pooling financial managerial and technical expertise across entities.

Following completion of the transfer, UK Paints India Private Limited’s direct shareholding in Berger Paints is expected to increase from 50.09 percent to 64.57 percent. The company clarified that there will be no change in the overall aggregate shareholding of the promoter and promoter group in Berger Paints India Limited as a result of the restructuring.

The filing also stated that the proposed acquisition is exempt from open offer obligations under applicable SEBI regulations. The volume weighted average market price of Berger Paints shares for the 60 trading days preceding the notice stood at ₹546.63 per share.

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