The restructuring is aimed at optimal utilisation of resources through pooling of financial, managerial and technical resources
Through an internal restructuring, UK Paints (India), a promoter group entity of Berger Paints India, will be acquiring another 14.48 per cent stake in the paints major. The acquisition of around 16.87 crore equity shares from Jenson & Nicholson (Asia) is scheduled to take place on or after 29 December, the company informed the bourses.
The transaction concerning the acquisition of 16,87,88,138 shares, involving a nil consideration, is being executed under a scheme of amalgamation sanctioned by the National Company Law Tribunal (NCLT) and the Jersey Financial Services Commission, the official statement noted.
On the rationale for the proposed transfer, the company labelled it to rationalisation and simplification of the existing group structure by reducing number of legal entities and jurisdictions. This will result in significant reduction in multiplicity of legal and regulatory compliances, multiple record keeping and cost saving by way of reduction of overheads, administrative, managerial and other.
The restructuring is aimed at optimal utilisation of resources through pooling of financial, managerial and technical resources. It also seeks to more efficient utilisation of capital for continued operations of the Transferee Company and help in achieving a streamlined structure.
Following the successful completion of the acquisition, the direct shareholding of UK Paints (India) in Berger Paints will increase from 50.09 per cent to 64.57 per cent. However, the filing made it clear that the overall aggregate shareholding of the promoter and promoter group in the company will remain the same.
Berger Paints India reported a 23.6 per cent year-on-year drop in consolidated net profit to Rs 206 crore for the quarter ended September 2025, compared with Rs 270 crore a year earlier.
Revenue from operations inched up 1.9 per cent to Rs 2,827 crore from Rs 2,774 crore in the same quarter last year. However, earnings before interest, tax, depreciation, and amortisation (Ebitda) fell 19 per cent year-on-year to Rs 352 crore from Rs 434 crore. Operating margin contracted to 12.4 per cent from 15.6 per cent in the corresponding period.
