May 25, 2026: Sindhu Trade Links Limited has announced one of its biggest strategic expansion moves in recent years.
Author: Aadarsh Patel | EQMint
The company’s board approved acquisitions worth nearly ₹922 crore through a complex share swap structure involving mining and coal assets.
The announcement came after a board meeting held on May 22. And the scale of dilution immediately caught investor attention.
What exactly did Sindhu Trade Links approve?
The company approved 2 separate acquisition transactions.
1. Advent Coal Resources acquisition
Sindhu Trade Links will acquire 78.26% stake in Advent Coal Resources Pte. Ltd., including 53.67% from related parties. The deal consideration stands at nearly ₹697 crore.
To fund this, the company plans to issue up to 30.04 crore equity shares through a preferential allotment route at ₹23.20 per share, including premium.
According to disclosures, Advent Coal owns economic interest in the MEC Coal Project in Indonesia along with logistics infrastructure linked to a deep-sea port.
2. Sainik Mining acquisition
The second deal involves acquisition of 50.10% stake in Sainik Mining and Allied Services Limited. This transaction is valued at ₹225.45 crore.
Instead of equity shares, Sindhu Trade Links will issue 9.71 crore CCPS (Compulsorily Convertible Preference Shares) at ₹23.20 each.
The CCPS can later convert into equity shares within 18 months.
Why the market may react sharply
The deal size is massive compared to the company’s current structure.
That’s why investors will likely focus on 3 things:
- dilution impact
- promoter holding changes
- execution risks
Several promoter-linked entities are part of the transactions.
The company also approved increasing its authorized capital from ₹156 crore to ₹196 crore to accommodate the issuance.
EQMint analysis
Strategically, the move clearly shows Sindhu Trade Links wants deeper exposure to coal logistics and mining infrastructure.
The Indonesia-linked Advent Coal asset could become the biggest long-term story here if execution works.
But the dilution is huge. More than 39 crore new securities may eventually enter the system through equity shares and CCPS conversion combined.
That means short-term stock reaction may depend less on the acquisition story and more on how investors price future dilution.
The Extraordinary General Meeting for shareholder approval is scheduled for June 18.
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Disclaimer: This article is not an investment advice and is for educational purpose only.
