Shares of Sudarshan Chemical Industries Ltd. are in focus after Chairman, Managing Director and promoter Rajesh Rathi increased his stake in the company through the conversion of warrants into equity shares.
The small-cap chemical company had a market capitalization of Rs. 7,266 crore. The stock was trading around Rs. 913, nearly 43 percent below its 52-week high of Rs. 1,604. It trades at a P/E ratio of 428, compared with the industry average of 18.7.
Promoter converts warrants worth nearly Rs. 100 crore
Rajesh Rathi converted 9.8 lakh warrants into equity shares, with the allotment completed on June 10, 2026.
The conversion price stood at Rs. 1,019.75 per share, which represented a premium of around 16 percent to the prevailing market price on the conversion date.
Following the conversion:
- Promoter group holding increased to 9.32 percent
- Earlier promoter holding stood at 8.19 percent
- The capital commitment amounted to nearly Rs. 100 crore
Management commentary
Rajesh Rathi said he has been associated with Sudarshan Chemical for more than three decades and continues to back the company with his own capital.
He said the company has built a strong global platform and expressed confidence in its long-term growth and expansion plans.
According to the company, the conversion at a premium reflects the promoters’ confidence in the business and its fundamentals.
Global presence
Following the acquisition of Heubach, Sudarshan Chemical has emerged as one of the world’s largest pigment manufacturers.
Key highlights include:
- More than 75 years of operating history
- Combined legacy of over 200 years
- Annual revenue of around €1 billion
- Presence across 17 countries
- 19 manufacturing facilities
- More than 4,000 customers
- Operations spanning over 100 countries
- Portfolio of around 1,600 pigment products
- More than 60 brands
- Product range comprising around 695 products
Financial performance
Year-on-year
Compared with Q4 FY25:
- Revenue increased from Rs. 1,349 crore to Rs. 2,790 crore, up 106 percent.
- Operating profit rose from Rs. 127 crore to Rs. 227 crore, an increase of 78 percent.
- Net profit improved from Rs. 40 lakh to Rs. 82 crore.
Quarter-on-quarter
Compared with the previous quarter:
- Revenue rose from Rs. 2,103 crore to Rs. 2,790 crore, up 32 percent.
- Operating profit surged from Rs. 38 crore to Rs. 227 crore, up 497 percent.
- The company reported a profit of Rs. 82 crore, compared with a loss of Rs. 116 crore in the preceding quarter.
About the company
Sudarshan Chemical Industries Ltd. manufactures organic pigments, inorganic pigments and effect pigments.
Following the Heubach acquisition, the company has become the world’s second-largest pigment player and serves customers across coatings, plastics, inks and other industries.
TL;DR
Sudarshan Chemical’s promoter Rajesh Rathi converted 9.8 lakh warrants worth nearly Rs. 100 crore, raising the promoter group’s stake to 9.32 percent. The conversion was carried out at a premium to the market price, reflecting confidence in the company’s long-term growth plans.
AI summary
- Rajesh Rathi converted 9.8 lakh warrants into equity shares.
- Promoter group holding rose from 8.19% to 9.32%.
- The conversion involved an investment of nearly Rs. 100 crore.
- Shares were allotted at Rs. 1,019.75 apiece.
- Sudarshan Chemical reported strong growth in revenue and profitability.
