Jolly Plastic Industries Board to Approve Share Issue for Sahaj Retail Acquisition

Jolly Plastic Industries Limited's Board of Directors is scheduled to meet on April 3, 2026, to approve the direct issuance of 1.77 crore equity shares to Bhaum Digital Ventures Private Limited. This move is a key step in finalizing the company's acquisition of Sahaj Retail Limited for ₹17.70 crore, following regulatory approval from SEBI on March 27, 2026.

Ownership Change Underway

The board's approval will finalize the issuance of shares to Bhaum Digital Ventures, a transaction that will significantly alter Jolly Plastic Industries' ownership structure. Bhaum Digital Ventures is set to become the majority shareholder, taking controlling stake and likely changing the company's promoter group. This is part of a larger deal where Jolly Plastic Industries is acquiring Sahaj Retail Limited from Bhaum Digital Ventures. The transaction is expected to lead to a new strategic direction for the company.

Deal Background

The current share issuance is central to Jolly Plastic Industries' plan to acquire Sahaj Retail Limited. The companies signed a share purchase agreement on January 21, 2026, for the acquisition valued at approximately ₹440 million (₹17.70 crore).

As required by SEBI takeover rules, Bhaum Digital Ventures will also make a public offer to acquire 26% of Jolly Plastic's expanded equity at ₹10 per share. The direct share issuance of 1.77 crore shares to Bhaum Digital Ventures at ₹10 each serves as the payment mechanism for the acquisition and facilitates the transfer of control. BSE had provided preliminary approval for this share issuance on March 9, 2026.

Key Changes for Shareholders

• Shift in Control: Bhaum Digital Ventures will acquire a majority stake, becoming the new controlling owner.
• Diluted Ownership: Existing shareholders will see their percentage ownership decrease due to the issuance of new shares.
• New Strategy: The new majority owner may implement changes in business strategy and operations.
• Acquisition Complete: The deal marks the successful acquisition of Sahaj Retail Limited by Jolly Plastic Industries.

Past Concerns and Scrutiny

While the focus is on the current transaction, Jolly Plastic Industries has faced past regulatory issues. In May 2020, SEBI imposed a ₹1.05 crore penalty on 21 entities for fraudulent trading in the company's shares between 2012 and 2014.

Additionally, the company's auditor noted a concern in its FY2025 report, citing accounting software that lacked audit trails. The company is upgrading its systems to address this. Appeals against SEBI orders concerning alleged past market manipulation have also been heard by the Securities Appellate Tribunal.

Next Steps for Investors

• Board Approval: Confirmation of the share issuance from the Board of Directors on April 3rd.
• Regulatory Filings: Subsequent filings detailing the allotment after board approval.
• Public Offer Finalization: Completion of Bhaum Digital Ventures' offer to public shareholders.
• Integration and Strategy: Announcements regarding the integration of Sahaj Retail Limited and future plans under new management.