Dabur India Approves Sesa Care Merger To Strengthen Ayurveda Hair Oil Range

The board of Dabur India Ltd. approved the scheme to merge Sesa Care Pvt Ltd with the company on Monday, according to an exchange filing. The two firms had signed an implementation agreement for the merger in October last year, when Dabur acquired 51% of Sesa Care’s paid-up cumulative redeemable preference shares.

The deal’s enterprise value was estimated at ₹3.15 billion to ₹3.25 billion, including ₹2.89 billion in debt.

Dabur sees the amalgamation as a strategic move to add a premium ayurveda brand to its portfolio, particularly strengthening its hair oil offerings. The merger is expected to help optimise costs and streamline daily operations for both companies.

No cash will be exchanged in the scheme. Instead, Dabur will issue shares proportionally to Sesa Care shareholders. For every 146,779 Class A equity shares of Sesa Care (₹10 face value), Dabur will allot 10 equity shares.

For every 244,860 Class B equity shares (₹6 face value), 10 shares will be allotted. Additionally, 10 shares will be issued for every 433 cumulative redeemable preference shares at ₹10 face value.

Once the scheme is approved, Sesa Care will be dissolved without winding up. After the merger, Dabur’s promoters’ shareholding will marginally fall from 66.22% to 66.21%, while non-promoter shareholding will increase from 33.78% to 33.79%.