Shares of Solar Industries India Ltd were trading 1.5% higher on 16 October after the company, through its wholly owned subsidiary Solar Explochem, has agreed to acquire 100% of Sivasakthi Industrial Explosives for Rs 115.02 crore in an all-cash deal. 

The company signed the agreement on 15 October 2026, and the acquisition is expected to be completed within 12 months. The move aims to expand Solar Industries’ presence in the industrial explosives business.

Sivasakthi Industrial Explosives, incorporated in 2008, manufactures, processes, supplies and distributes explosives used in mining and other industrial applications. The acquisition will bring the company under Solar Explochem, strengthening Solar Industries’ existing explosives operations.

The transaction is not classified as a related-party deal. Solar Industries also stated that its promoter group has no interest in the company being acquired. No government or regulatory approvals have been identified as necessary for the transaction.

Sivasakthi’s recent financial performance has been weak. The company reported no turnover in FY26, compared with approximately Rs 35 lakh in FY25 and Rs 1.26 crore in FY24.

Despite the low reported turnover, Solar Industries has agreed to pay Rs 115.02 crore for full ownership. The company has described the acquisition as a business expansion initiative, although its disclosure does not provide further details on the valuation or the target’s future revenue plans.

The deal supports Solar Industries’ efforts to strengthen its core explosives business. Its long-term contribution will depend on how the acquired operations are integrated and whether the business can scale up production and sales.

At 12:42 pm, the shares of Solar Industries were trading 0.87% higher at Rs 20,039 on NSE. 

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