Solar Industries shares fall 4% after Omnia deal: Morgan Stanley, Antique targets

Solar Industries India Ltd saw its shares falling over 4 per cent in Friday’s trade after a wholly-owned step down subsidiary Solar SA Investments Proprietary announced acquiring of Omnia Holdings, an international diversified group providing innovative products, solutions and specialised services to the mining and agriculture sectors.

The Solar Industries  stock fell 4.43 per cent to hit a low of Rs 21,317.70, trimming its year to date returns to 78 per cent. Despite this, Morgan Stanley’s Girish Acchipalia suggested 'Overweight' on the stock with a target of Rs 22753 on the stock. Antique Stock Broking’s Samjeev Zarbade suggested ‘Buy’ with higher target of Rs 24,418. Goldman Sachs’ Amit Dixit had on Sunday suggested ‘Buy’ and a target of Rs 26,550 on the stock.

The transaction would create one of the largest and most integrated explosives and blasting solutions platforms globally, with expanded manufacturing capabilities, enhanced market reach and access to strategically important mining jurisdictions.
The benefits would be visible from FY28, Antique said.

“South Africa is one of the largest markets for mining products, and Solar can significantly expand its presence through Omnia,” said Antique Stock Broking. It said the combination will serve as a significant catalyst for Solar Group's next phase of growth.
 
The two companies signed definitive agreements under which Solar SA Investments Proprietary Limited will acquire all outstanding shares of Omnia in an all-cash transaction for a consideration of approximately $1.355 billion or Rs 12,951 crore, subject to customary closing
conditions, including receipt of required regulatory approvals and approval by Omnia shareholders.
Solar Industries is aleading global manufacturer of explosives and ammunition.

“The acquisition is subject to regulatory approvals and Omnia shareholder consent, and is expected to close in early-to-mid 2027, after which Omnia will be delisted from the JSE and A2X Markets. We reiterate our BUY rating on the stock with a TP of INR 24,418 (Earlier 23,197) based on 60x 1HFY29E,” Antique said.

For the financial year ended March 31, 2026, Omnia reported revenue of approximately US$1.41 billion (Rs 13,307 crore and remained net cash positive, reflecting its financial discipline and strong position
as a leading global player in explosives, mining solutions and agriculture.

Solar first entered the Southern African Development Community (SADC) region in 2010 with the establishment of a manufacturing facility in Zambia. It subsequently commenced operations in South Africa in 2015 through a distribution platform, followed by the commissioning of its manufacturing facility in Middelburg in 2017.

“These investments have enabled Solar to establish a strong operational foundation and become a trusted partner to the region's mining industry. In 2024, Solar strengthened its South African presence through the acquisition of ProBlast, a local South African company specialising in open-cast mining, drilling, blasting and explosives services,” Solar said.

Building on this foundation, the proposed acquisition of Omnia by Solar SA represents the next strategic step in Solar Group’s SADC growth journey, significantly expanding its operational, manufacturing and distribution capabilities, it said.