DCM Shriram approves up to ₹50 crore equity for Shriram Teknor JV

Mergers & acquisitions
chemicals, vinyl and fertilisers

Blacklitt Research26 October 20262 min read

DCM Shriram (NSE: DCMSHRIRAM) approved an equity contribution of up to ₹50 crore in Shriram Teknor Limited, its joint venture with Teknor Apex B.V., towards that company's capital investment of up to ₹133 crore, it said in a filing on 26 Oct 2026.

Key highlights

Equity contribution: up to ₹50 crore, in one or more tranches
Capital investment of Shriram Teknor: up to ₹133 crore
Company's stake after the investment: 50%
Indicative completion: December 2027

The equity contribution in numbers

Item	Detail
Investee	Shriram Teknor Limited (STL), a joint venture with Teknor Apex B.V.
Equity contribution by the Company	Up to ₹50 crore, in cash
STL capital investment	Up to ₹133 crore, for new manufacturing lines
Company's stake after the investment	50%
Indicative completion	December 2027
STL paid-up share capital	₹3.47 crore
STL turnover, FY 2025-26	₹214.43 crore
STL profit after tax, FY 2025-26	₹8.82 crore
STL net worth as on 31 Mar 2026	₹87.3 crore

What the investment is for

The equity supports Shriram Teknor's capacity expansion and its diversification into speciality PVC grades, speciality medical grades and Halogen-Free Flame Retardant (HFFR) grades, the filing says.

The capital investment of up to ₹133 crore is proposed to be met by ₹50 crore of equity from each of the two JV partners, with the balance from Shriram Teknor's internal cash generation and debt funding.

Shriram Teknor's size in the filing

Shriram Teknor's paid-up share capital is ₹3.47 crore, its FY 2025-26 turnover was ₹214.43 crore and its profit after tax was ₹8.82 crore, with net worth of ₹87.3 crore as on 31 Mar 2026. The transaction is classed as a related party transaction and is proposed at arm's length.

What the equity contribution means for DCM Shriram's shareholders

Up to ₹50 crore of cash goes out in one or more tranches, and the Company's stake in Shriram Teknor stays at 50%. Neither the timing of the tranches nor the effect on the Company's results is given.

The next dated step is the indicative completion of the capital investment in December 2027.

Reference: Original filing (PDF)

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