Gujarat Apollo Industries has announced the proposed sale of its 17.96% stake in Credo Advanced Chemicals for Rs 37.63 crore. The transaction awaits shareholder approval at the upcoming 39th AGM scheduled for September 28, 2026. This divestment represents a shift in portfolio strategy, with the target entity previously contributing roughly 7.92% to company turnover.
Gujarat Apollo Industries Announces Strategic Divestment of Credo Advanced Chemicals Stake
Transaction Value: Rs 37.63 crore | Stake Divested: 17.96%
Reader Takeaway: Divestment streamlines the portfolio for Gujarat Apollo, though final execution remains contingent on shareholder approval at the AGM.
What just happened
Gujarat Apollo Industries Limited has secured in-principle approval from its Board to divest its entire 17.96% equity stake in Credo Advanced Chemicals Limited. The stake consists of 13,440,000 equity shares, which will be sold to Mr. Naman Madhav Patel, a non-related party, for a total cash consideration of Rs 37.63 crore. The completion of this transaction is expected within 90 days following formal shareholder approval.
Why this matters
This sale acts as a strategic reshuffle of the company’s investment portfolio. Credo Advanced Chemicals currently accounts for 7.92% of Gujarat Apollo's annual turnover and net worth. By exiting this investment, the company is effectively trimming its footprint in the chemical segment to focus on other core operations. Investors should note that the transaction adheres to SEBI (LODR) regulations and does not fall under a scheme of arrangement.
What changes now
Shareholders are now tasked with the final decision on this divestment at the 39th Annual General Meeting (AGM) on September 28, 2026. Simultaneously, the company has declared September 21, 2026, as the record date for determining eligibility for both the upcoming dividend and participation in the AGM proceedings.
What to track next
Investors should monitor the AGM results, specifically the voting outcome regarding this divestment. Additionally, the successful completion of the transaction within the projected 90-day window following the AGM will be the primary indicator of the capital infusion timeline for Gujarat Apollo.