Vinati Organics invests Rs 19.88 crore in Veeral Organics rights issue

Kinjal — Mon, 18 May 2026 09:25:03 +0000

Vinati Organics Limited has made a significant investment in its wholly owned subsidiary, Veeral Organics Pvt. Ltd., by subscribing to additional equity shares. The company has acquired 1,98,80,000 fully paid-up equity shares with a face value of ₹10 each, amounting to a total investment of ₹19,88,00,000. This investment was made through a rights issue, ensuring that the new shares rank pari-passu with existing equity shares of Veeral Organics.

Veeral Organics Pvt. Ltd., incorporated on October 5, 2020, under the Indian Companies Act, 2013, operates in the chemical industry, focusing on the manufacturing of organic fine specialty chemicals. The company has shown a steady increase in turnover over the past three years, with figures of ₹21.94 crore for FY 2025-26, ₹10.55 crore for FY 2024-25, and ₹0.09 crore for FY 2023-24.

The transaction falls under related party transactions as Veeral Organics is a wholly owned subsidiary of Vinati Organics. However, the acquisition is at arm’s length, and the provisions of Related Party Transaction under SEBI (LODR) Regulations, 2015, do not apply to this further acquisition of equity shares.

Vinati Organics’ investment in Veeral Organics does not alter the shareholding structure, as Veeral Organics remains a 100% wholly owned subsidiary. The investment is part of Vinati Organics’ strategy to bolster its subsidiary’s capabilities in the chemical sector, aligning with its core business operations.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Veeral Organics | Business Upturn

Vinati Organics invests Rs 19.88 crore in Veeral Organics rights issue