Himadri Speciality Chemical Announces Demerger of Its Tyre Business; Will Himadri Shareholders Receive Its Shares?
This Mid-Cap Stock, engaged in manufacturing speciality chemicals, carbon materials, advanced battery materials, and performance products serving diverse industrial applications globally, jumped 2.74 percent after announcing a proposed demerger to acquire Dalmia Bharat Refractories’ Tyre Business, strengthening forward integration, expanding its product portfolio, and creating potential synergies across sourcing, manufacturing, logistics, and customer engagement.
With a market capitalization of Rs. 34,644.06 crores, the share of Himadri Speciality Chemical Limited has reached an intraday high of Rs. 692.70 per equity share, rising nearly 2.74 percent from its previous day’s close price of Rs. 674.25. Since then, the stock has retreated and is currently trading at Rs. 686.45 per equity share.
Demerger Plan and the Tyre Business Transfer:
The proposed Scheme of Arrangement involves the demerger of the Tyre Business of Dalmia Bharat Refractories Limited (DBRL) and its transfer to Himadri Speciality Chemical Limited (HSCL) as the Resulting Company. The transaction is proposed under Sections 230–232 of the Companies Act, 2013 and provides for the transfer and vesting of the Tyre Business as a going concern, on an “as is where is” basis. The proposed Appointed Date is 1 October 2026, subject to approval by the National Company Law Tribunal (NCLT).
The Demerged Undertaking includes the assets, liabilities, contracts, employees, brands, trademarks, licences, permits, approvals and properties attributable to the Tyre Business. The business covers the designing, manufacturing and development of different types of tyres and tyre products. For the financial year ended 31 March 2026, the turnover of the Demerged Undertaking was Rs. 149.31 crore.
Rationale Behind the Proposed Demerger and Potential Synergies:
The rationale for the demerger is to provide a more focused ownership and operating structure for the Tyre Business while allowing both companies to deploy management attention, capital and resources towards their respective strategic objectives. For Himadri Speciality Chemical Limited, the transaction is expected to strengthen its forward integration into the tyre value chain, particularly by combining the Tyre Business with its existing carbon black and advanced carbon materials businesses.
The proposed combination is also expected to generate operational and commercial synergies in areas such as raw-material sourcing, product development, manufacturing, logistics, distribution, market development, shared services and customer engagement. Direct ownership of the Tyre Business would provide HSCL with greater flexibility in capacity utilisation, modernisation, product development, investment and expansion.
Share Entitlement and Listing Details:
As consideration for the demerger, no cash consideration is proposed. Instead, eligible shareholders of DBRL will receive shares of HSCL in accordance with the Share Entitlement Ratio. The stated ratio is 1 fully paid-up equity share of HSCL for every 260 fully paid-up equity shares of DBRL held by eligible shareholders on the Record Date. The ratio was determined based on an independent valuation report and was subject to a fairness opinion from a SEBI-registered Category-I Merchant Banker.
Following implementation of the Scheme, the new HSCL shares issued as consideration are proposed to be listed and admitted to trading on BSE Limited and the National Stock Exchange of India Limited, subject to obtaining the requisite regulatory approvals.
Unlike a typical demerger, where a business is transferred to a separate company and shareholders may receive shares of that company, in this case, DBRL’s Tyre Business is being transferred directly to the existing listed company, Himadri Speciality Chemical Limited (HSCL). As consideration, eligible DBRL shareholders will receive 1 HSCL share for every 260 DBRL shares held. The new HSCL shares issued under the Scheme are proposed to be listed on BSE and NSE, subject to regulatory approvals.
Future Outlook
Himadri Speciality Chemical Limited (HSCL) has a clear growth roadmap towards FY28, with a focus on expanding its core business and entering higher-value segments. In FY27, the company plans to achieve full-year operations from its expanded Speciality Carbon Black capacity, ramp up Birla Tyres in OHT and CV segments, and complete its 2,600 MTPA Anthraquinone and Carbazole project by Q2FY27. The company also plans to operationalise the first phase of its LFP Cathode Active Material plant at 2,000 MTPA in Q3FY27 and ramp up its Durofresh naphthalene balls business.
By FY28, HSCL aims to scale Birla Tyres across OHT, CV and PCR segments, while achieving full-year operations in Anthraquinone and Carbazole. The LFP business is expected to expand further, while Super Speciality Carbon Black capacity of 6,000 MTPA is targeted for FY28. The company also plans full operations of Durofresh and Carbon Nanotubes. These initiatives are aimed at diversifying the business and supporting sustainable profitability growth.
Client Base:
Himadri Speciality Chemical Limited has built a diversified client base across the tyre, automotive, chemicals, and industrial sectors. Its clients include Yokohama, Goodyear, Toyo Tires, Bridgestone, Continental, CEAT, Apollo Tyres, Cooper Standard, HEXPOL, Trelleborg, Pidilite, Alcoa, Nalco, Vedanta, Grace, Aditya Birla, Hindalco, Balco, Fosroc and Parker. This broad customer base reflects the company’s established relationships and product reliability.
Company Overview:
Himadri Speciality Chemical Limited (HSCL) is a world-class speciality chemicals company based in Kolkata. It has made its mark in the area of carbon chemistry products and advanced chemicals. HSCL was set up in the year 1990 and has gained experience in coal tar pitch, carbon black, refined naphthalene, speciality oils, sulphonated naphthalene formaldehyde (SNF), and new energy materials.
Himadri Speciality Chemical Limited’s products are utilized in industries such as lithium-ion batteries, tyres, paints, plastics, aluminium, graphite electrodes, construction chemicals, and agrochemicals. The company places much emphasis on research and development of specialty oil-based products such as lithium-ion battery anode materials.
Recent Quarter Results:
Looking at the company's financial highlights, Himadri Speciality Chemical Limited's revenue has increased from Rs. 1,118 crore in Q1 FY26 to Rs. 1,432 crore in Q1 FY27, which has grown by 28.09 percent. The net profit has also grown by 27.37 percent from Rs. 179 crore in Q1 FY26 to Rs. 228 crore in Q1 FY27.
Himadri Speciality Chemical Limited’s revenue and net profit have grown at a CAGR of 23 percent and 74 percent, respectively, over the last five years. In terms of return ratios, the company's ROCE and ROE stand at 22.1 percent and 17.8 percent, respectively. Himadri Speciality Chemical Limited has an earnings per share (EPS) of Rs. 15.9, and its debt-to-equity ratio is 0.16x.