Sindhu Trade Links Soars After Rs. 922 Crore Acquisition, Preferential Issue Plans

As part of its expansion strategy, the board approved the acquisition of a 78.26 per cent stake in Advent Coal Resources Pte. Ltd. through the purchase of 16,477 equity shares. The transaction, valued at ₹697.06 crore, includes acquisition of a 53.67 per cent stake from a related party and has been priced at ₹4,23,047.70 per share.

To finance the acquisition, Sindhu Trade Links will issue up to 30.04 crore equity shares on a preferential basis at a face value of Re 1 and a premium of ₹22.20 per share to existing shareholders of Advent Coal Resources. The allotment will take place in one or more tranches, subject to regulatory and shareholder approvals.

Among the major proposed allottees, Indo Pacific Partners (PTC) Ltd, acting as trustee of The Indo Pacific Partners Trust, is set to receive 20.60 crore equity shares, translating into an 11.18 per cent post-issue stake. Other entities including Astrea Fund Ltd, RMK Investments Pte. Ltd, Sub Rosa Partners Pte. Ltd, Artham Resources Management – FZCO and Sharifah Binti Syed Mohamad will also receive allocations under the preferential issue.

In another significant transaction, the company approved acquisition of a 50.10 per cent stake in Sainik Mining and Allied Services Ltd through the purchase of 21,36,765 equity shares from existing shareholders belonging to the promoter and promoter group of Sindhu Trade Links. The acquisition is valued at ₹225.45 crore.

Under this transaction, the company will issue up to 9.71 crore compulsorily convertible preference shares (CCPS) at a face value of Re 1 and a premium of ₹22.20 per share. The CCPS will be convertible into equity shares in a 1:1 ratio and will carry a maximum tenure of 18 months, along with an early conversion option.

Sainik Mining India Pvt Ltd will receive 4.65 crore CCPS under the preferential allotment, while promoters including Rudra Sen Sindhu, Vir Sen Sindhu, Vrit Pal Sindhu, Abhimanyu Sindhu, Satyapal Sindhu and Dev Sindhu are also among the proposed allottees.

The company said the acquisitions are intended to consolidate its operational and asset base across the mining value chain. Advent Coal Resources effectively owns 100 per cent economic interest in the MEC Coal Project in Indonesia along with associated logistics infrastructure, while Sainik Mining and Allied Services is engaged in mine development, overburden removal, coal extraction and transportation contracts.

Operationally, Sainik Mining and Allied Services has reported consistent revenue growth, posting turnover of ₹1,088.53 crore in FY25 compared with ₹1,045.59 crore in FY24 and ₹979.97 crore in FY23. Advent Coal Resources, however, reported nil turnover during the last three financial years.

The board has fixed May 19, 2026, as the relevant date for determining the floor price for the proposed preferential issues under SEBI ICDR Regulations. Shareholders’ approval for the transactions will be sought through an Extraordinary General Meeting scheduled on June 18, 2026. Practicing Company Secretary Payal Sharma has been appointed as scrutinizer for the e-voting process.

Sindhu Trade Links currently commands a market capitalisation of over ₹4,217 crore. The stock has rallied more than 25 per cent over the past one year and has surged around 55 per cent from its 52-week low of ₹17.64 per share.

Disclaimer: This article is for informational purposes only and does not constitute financial advice.