Brainbees Solutions Subsidiary Acquires KA Hygiene for INR 58 Crore
Filing Summary
Brainbees Solutions Limited has announced that its subsidiary, Swara Baby Products Private Limited, will acquire a 100% stake in K.A. Enterprises (Hygiene) Private Limited. The acquisition will be executed through the issuance of 38,49,572 equity shares of Swara Baby, valued at INR 58 Crore. This transaction will adjust Brainbees Solutions’ shareholding in Swara Baby from 87.29% to 75.92%. The acquisition is expected to be completed by December 31, 2025, making KA Hygiene a wholly-owned subsidiary of Swara Baby and a step-down subsidiary of Brainbees Solutions.
Brainbees Solutions Limited has disclosed that its subsidiary, Swara Baby Products Private Limited, has entered into an agreement to acquire a 100% stake in K.A. Enterprises (Hygiene) Private Limited. The acquisition will be completed through a share swap agreement involving the issuance of 38,49,572 equity shares of Swara Baby. This transaction will result in KA Hygiene becoming a wholly-owned subsidiary of Swara Baby and a step-down subsidiary of Brainbees Solutions.
The financial terms of the acquisition involve a total consideration of INR 58 Crore. The transaction will be executed by issuing equity shares of Swara Baby to the existing shareholders of KA Hygiene. As a result of this share issuance, the shareholding of Brainbees Solutions in Swara Baby will be adjusted from 87.29% to 75.92%. This adjustment reflects the dilution of Brainbees Solutions’ stake due to the issuance of new shares to acquire KA Hygiene.
KA Hygiene, incorporated in India on July 31, 2019, is engaged in the manufacturing and trading of hygiene products. Prior to the acquisition agreement, KA Hygiene acquired the entire business of K.A. Enterprises, a common controlled entity also involved in the hygiene products sector. The combined turnover of KA Hygiene and K.A. Enterprises for the financial year 2024-25 was INR 84 Crore. The profit after tax for the same period was INR 5 Crore. KA Hygiene’s recent commencement of operations has resulted in negligible turnover, profit after tax, and net worth.
The acquisition agreement does not require any governmental or regulatory approvals. The transaction is expected to be completed on or before December 31, 2025. The acquisition will be executed at arm’s length, with no interest from group companies in KA Hygiene beyond their shareholding and common directorship.
Brainbees Solutions Limited is a prominent player in the retail sector, focusing on providing a wide range of baby and kids’ products. The company is known for its strategic acquisitions and expansion into new markets to enhance its product offerings and strengthen its market position.