Kajaria Ceramics buys ₹45 crore of preference shares in step-down unit

Mergers & acquisitions
Ceramics and sanitaryware

Blacklitt Research29 October 20262 min read

Kajaria Ceramics (NSE: KAJARIACER) subscribed 4,50,00,000 non-convertible redeemable preference shares of Kerovit Global Private Limited for ₹45 crore in cash, it said in a filing on 29 Oct 2026. Kerovit Global is a step-down wholly-owned subsidiary and remains one after the subscription.

Key highlights

Subscription: ₹45 crore cash for 4,50,00,000 NCRPS
Coupon 0.25%, redeemable on completion of ten years
KGPL turnover FY26: ₹36.11 crore
KGPL loss after tax FY26: ₹31.65 crore

The subscription in numbers

Item	Detail
Subsidiary	Kerovit Global Private Limited (KGPL), step-down wholly-owned subsidiary
Held through	Kajaria Bathware Private Limited, a wholly-owned subsidiary, holds 100% of KGPL's equity shares
Instrument	0.25% Non-Convertible Redeemable Preference Shares
Number subscribed	4,50,00,000
Consideration	₹45 crore, cash
Redemption	On completion of ten years
Date of subscription	29 Oct 2026
Related party transaction	Yes; Audit Committee has approved it as being at arm's length

What the subscription does

Kajaria Ceramics subscribed the preference shares on 29 Oct 2026. The company says the purpose is to improve the debt-equity ratio of KGPL.

The company states the transaction is a related party transaction because KGPL is its step-down wholly-owned subsidiary. No entity is acquired through the subscription other than the NCRPS of KGPL, and KGPL remains a step-down wholly-owned subsidiary afterwards.

KGPL's size and losses

KGPL was incorporated on 18 Jan 2022 and manufactures sanitaryware products, operating in India. Its turnover was ₹36.11 crore in FY26, ₹10.84 crore in FY25 and ₹4 lakh in FY24.

In FY26 KGPL reported a loss after tax of ₹31.65 crore on turnover of ₹36.11 crore. The ₹45 crore subscription is set against a company whose market value was ₹17,556 crore at the 29 Oct 2026 close, and whose consolidated net profit for Q1 FY27 was ₹171.03 crore.

What the subscription means for Kajaria Ceramics' shareholders

The transaction moves ₹45 crore of cash into a subsidiary within the group and leaves the ownership of KGPL unchanged. The filing gives no dated next step beyond redemption after ten years.

Not stated: whether further funding will follow, KGPL's debt and equity before or after the subscription, or whether its loss after tax will continue.

Reference: Original filing (PDF)

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