SER Industries Board Approves Major Leadership Reshuffle and ₹552 Crore Acquisitions via Share Swap

Mumbai, 21 January 2026: In a significant strategic overhaul, the Board of Directors of SER Industries Limited (BSE: 507984) has approved a series of high-impact decisions, including top management changes and the acquisition of two related-party companies for a combined value of approximately ₹552.81 crores. The approvals, granted in a board meeting held on 20 January 2026, are aimed at pivoting the company from its core logistics business into the dairy and food products sector.

Sunil Kumar Shahi Re-Designated as Managing Director & Chairman

Based on the Nomination and Remuneration Committee’s recommendation, the Board approved re-designating Mr. Sunil Kumar Shahi from Executive Director to Managing Director and Chairman for a five-year term effective 20 January 2026, subject to shareholder approval. Mr. Shahi, a founder of one of the acquisition targets, brings over 25 years of experience across automotive, electric mobility, and agritech sectors to the role.

New CFO and Independent Director Appointed to Strengthen Governance

The boardroom reshuffle included the appointment of CA Shrenik Rajiv Karnawat as the new Chief Financial Officer, effective immediately. Additionally, Mr. Ayush Munnalal Sharma was appointed as an Additional Director (Non-Executive and Independent) for a five-year term. Mr. Sharma, a legal professional with over a decade of experience, is expected to bolster the company’s corporate governance and compliance framework.

Board Greenlights Capital Increase to ₹46 Crores for Expansion Plans

To facilitate its new strategic direction, the Board reconsidered and approved a revised proposal to increase the company’s Authorised Share Capital from ₹6 crores to ₹46 crores. This capital will be divided into 4.22 crore equity shares and 38 lakh preference shares, each with a face value of ₹10. The move, requiring shareholder and regulatory approval, is intended to support the company’s expanded business objectives and acquisition financing.

Major Strategic Shift: Acquiring 100% of Two Dairy & Food Companies

The most substantial decisions involved the approval of two related-party acquisitions to be executed through a share-swap mechanism, signalling a major diversification away from logistics.

1. Acquisition of SNA Milk and Milk Products Limited: The Board approved acquiring 100% of SNA Milk for an aggregate value of ₹305.80 crores. SNA, incorporated in 2016, reported a turnover of ₹33.74 crores for FY24-25. The purchase consideration will be paid by issuing SER Industries’ securities on a preferential basis.
2. Acquisition of DFSU Farmer Connect Private Limited: The Board also approved acquiring 100% of DFSU Farmer Connect for ₹247.01 crores. DFSU, incorporated in August 2025, is engaged in manufacturing ice cream and healthy snacks.

Financing the Deal: Preferential Issue of Securities Worth ₹552 Crores

The total consideration for both acquisitions, amounting to ₹552.81 crores, will be discharged through a non-cash, share-swap arrangement. SER Industries will issue securities to the shareholders of the target companies at an issue price of ₹135 per share (₹10 face value + ₹125 premium). The issuance includes:

• Up to 1.80 crore equity shares.
• Up to 37.61 lakh, 3% Compulsorily Convertible Preference Shares (CCPS), convertible within 12 months.
• Up to 50.66 lakh, 5% Compulsorily Convertible Debentures (CCDs), convertible within 15 months.
• Post-acquisition, both SNA Milk and DFSU Farmer Connect will become wholly-owned subsidiaries of SER Industries.

Post-Allotment Shareholding: Promoter Stake to Settle at 46.85%

Upon full conversion of the CCPS and CCDs into equity, the total paid-up equity capital of SER Industries is projected to increase to approximately ₹41.02 crores. The shareholding pattern post-conversion is estimated to result in the Promoter and Promoter Group holding 46.85%, with public shareholders holding the remaining 53.15%.

References: https://www.bseindia.com/stock-share-price/ser-industries-ltd/serind/507984/corp-announcements/

Disclaimer: At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations