Divestitures
Shahlon Silk Industries Receives ₹85.50 Lakh Refund as Karanj Envirocare Share Subscription Collapses
By News Desk ·
Key takeaways
- Shahlon Silk Industries received a full refund of ₹85.50 lakh from Karanj Envirocare Private Limited after its proposed investment did not materialise.
- The Board approved the subscription of 8,55,000 equity shares at ₹10 each on May 29, 2026, and the company remitted the full application money.
- No shares were allotted to Shahlon Silk, and the Board noted the refund at its November 4, 2026 meeting.
Shahlon Silk Industries has received a refund of ₹85.50 lakh from Karanj Envirocare Private Limited after its proposed investment in the company did not materialise. ScanX reported that no shares were allotted and the Board noted the refund on November 4, 2026.
Shahlon Silk's Withdrawn Karanj Envirocare Subscription
Shahlon Silk Industries is a publicly listed integrated textile manufacturer based in Surat, producing yarns, greige and finished fabrics, sustainable textiles and non-woven medical fabrics. Karanj Envirocare Private Limited was the subject of a proposed subscription of renounced rights issue shares offered by its existing shareholders.
The Board of Shahlon Silk approved the investment on May 29, 2026, authorising a subscription of ₹85.50 lakh towards 8,55,000 equity shares of Karanj Envirocare at a face value of ₹10 each. Shahlon Silk remitted the full share application money to Karanj Envirocare following that approval.
Karanj Envirocare returned the entire ₹85.50 lakh to Shahlon Silk. The company said the proposed investment was no longer considered necessary because of revised business requirements, and no equity shares were allotted against the application money.
The Board took note of the refund at its meeting on November 4, 2026, which ran from 11:00 am to 2:45 pm. Shahlon Silk made the disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, updating the exchange on the status of the proposed investment.
Shahlon Silk's Earlier Acquisition and Tax Notice
According to akta.pro company records, Shahlon Silk disclosed an acquisition under Regulation 30 of SEBI (LODR) in November 2025, indicating inorganic expansion activity. The same records show sales of Rs 259.55 crore for the full year ended March 2026, up 3.30% year-on-year, and net profit of Rs 4.45 crore for the year, up 27.14%.
GST Penalty and March Quarter Profit
Shahlon Silk received a ₹5.50 crore GST penalty for ineligible Input Tax Credit claims from the Surat GST department, ScanX reported on October 26, 2026. The order, dated October 23, 2026, covers FY24 and FY25, and the company plans to appeal before the appellate authority.
Business Standard reported on May 30, 2026 that Shahlon Silk's standalone net profit rose 163.64% year-on-year to Rs 0.87 crore for the quarter ended March 2026, driven by a 30.50% increase in sales to Rs 82.19 crore.