Highlights

• Strategic Acquisition Approved: AVI Polymers plans 90% stake acquisition in JVTR Consultants Private Limited.
• Share Swap Route Selected: Proposed transaction to be executed through preferential equity share issuance.
• Technology Expansion Planned: Company approves new technology-related business objects in MOA alteration.

AVI Polymers Limited (BSE:539288) informed the stock exchange that its Board of Directors, in a meeting held on 7 May 2026, approved a strategic acquisition proposal along with expansion of the company’s core business activities.

The board approved issuance of equity shares through a share swap mechanism on preferential basis to acquire a 90% stake in JVTR Consultants Private Limited. The proposed acquisition is valued at an indicative ₹500 Crore. The company stated that the transaction remains subject to finalization of terms, completion of due diligence, execution of definitive agreements, shareholder approval and regulatory clearances, wherever applicable.

Share Swap and Fund Raising Structure

The acquisition is proposed through issuance of equity shares instead of a cash transaction. Under the share swap arrangement, shares of AVI Polymers may be issued to the stakeholders of JVTR Consultants Private Limited as consideration for the acquisition.

The company clarified that definitive terms and conditions are yet to be finalized. The transaction structure may also undergo modifications depending on regulatory approvals and due diligence findings. The proposal is part of the company’s broader strategic restructuring and expansion plans.

Expansion Into Technology Segment

The board also approved alteration of the Memorandum of Association (MOA) to include new business objects linked to the technology sector. The approved additions include information technology services, software development, system integration, digital platforms and allied technology services.

According to the company, these additions are intended to align business operations with the proposed acquisition and future technology-focused activities. The MOA amendment will require shareholder approval before implementation.

Risks

Acquisition completion depends on shareholder and regulatory approvals.
Due diligence findings may impact final transaction structure or valuation.
Share swap issuance may lead to equity dilution for existing shareholders.
Technology sector expansion may involve execution and integration challenges.

Summary

AVI Polymers (BSE:539288) has approved a proposal to acquire a 90% stake in JVTR Consultants Private Limited through a preferential share swap transaction valued at an indicative ₹500 Crore. The board also approved expansion of business objects into technology-related services including software development and digital platforms. The proposal remains subject to due diligence, shareholder approval and regulatory clearances.

FAQs

Q: What acquisition has AVI Polymers approved?
A: The company approved acquisition of 90% stake in JVTR Consultants Private Limited through a proposed share swap transaction.

Q: What new business areas will AVI Polymers enter?
A: The company plans expansion into software development, IT services, digital platforms and allied technology activities.

Q: Is the AVI Polymers acquisition transaction finalized?
A: No, the transaction remains subject to due diligence, agreements, shareholder approval and regulatory clearances.