Pidilite Industries Limited ("Company") has informed that the board of directors of the company at its meeting approved the investment of the Company in equity shares of CIPY Polyurethanes Private Limited ("CIPY") subject to completion of certain conditions precedent as agreed between the Company, CIPY and the sellers of the equity shares (Parties). The proposed shareholding of the Company in CIPY post such investment will be 70% (seventy-percent) initially, thereby making CIPY a subsidiary of the Company. The acquisition of shares of CIPY is not a related party transaction.

CIPY was incorporated on 29th November 1994 and it is engaged in the business of manufacture and sale of floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers. CIPY is one of the well-known floor coating companies in India. No governmental approvals are required for the proposed acquisition. The nature of consideration will be cash being an amount of Rs. 96.40 crores in aggregate payable to the existing shareholders of CIPY for the purchase of a portion of the shares held by them in CIPY.

This acquisition will help the Company to participate in the growth of the resin flooring and floor coatings market. The turnover of CIPY was 96.41 crores for the year 2014-15, Rs. 104.52 crores for the year 2015-16 and Rs. 110.40 crores for the year 2016-17.Subject to completion of conditions precedent, it is expected to complete the acquisition within a period not exceeding two months.