Infra.Market is preparing to enter India’s public markets through a reverse merger with Shalimar Paints, replacing the construction-materials unicorn’s earlier plan for a conventional initial public offering. The transaction would combine the privately held technology-led procurement and distribution business with a listed company that Infra.Market already controls, creating a single publicly traded building-materials group.
Shalimar Paints’ board approved the proposed arrangement on August 12. Under the plan, Infra.Market shareholders will exchange their holdings for newly issued equity and preference shares in Shalimar Paints. On completion, they are expected to own approximately 77% of the enlarged listed entity. Infra.Market currently holds a 52.85% promoter stake in Shalimar Paints through Hella Infra Market.
The scheme values the proposed combination at approximately Rs 10,545 crore. Shalimar Paints also plans to raise Rs 1,000 crore through a qualified institutional placement. The capital raise would take place alongside the restructuring and provide the combined group with additional funds as it integrates manufacturing, distribution and technology-led procurement operations.
The transaction remains subject to shareholder, stock-exchange, regulatory and tribunal approvals. Consequently, the final shareholding structure and completion timetable could change during the approval process.
Infra.Market had confidentially filed documents for an IPO of about Rs 5,000 crore in October 2025. The reverse-merger structure allows the company to pursue a listing through an existing public vehicle while consolidating Shalimar Paints, a business in which it has progressively increased its ownership since its initial investment in 2022.
Infra.Market operates a technology-enabled platform for construction materials and provides products across concrete, steel, tiles, plywood, sanitaryware and related categories. Its operating model combines private-label manufacturing, third-party sourcing, fulfilment and digital procurement for contractors and infrastructure customers. Shalimar Paints adds an established paints and coatings brand, manufacturing infrastructure and a dealer-led retail network.
The proposed combination would place Infra.Market’s digital procurement and supply-chain systems, manufacturing interests and consumer-facing brands under a listed corporate structure. It would also shift the company away from a standalone IPO process at a time when several Indian technology companies are evaluating alternative public-market structures, including mergers and share swaps.
Infra.Market is backed by investors including Accel and Nexus Venture Partners. Its shareholders would become the controlling economic owners of the listed company after the proposed share issuance, while existing Shalimar Paints shareholders would retain a minority position in the enlarged entity.
