By Bl Mumbai Bureau
Copyright thehindubusinessline
In an interesting twist in the ongoing tussle in the Kalyani group, Baba Kalyani’s son Amit Kalyani has sought his re-election as non-executive director of Hikal, a speciality chemical and pharma company.
Hikal was founded by Jaidev Hiremath, husband of Sugandha, sister of Baba Kalyani. The seed fund for starting the business and manufacturing facility in Maharashtra was provided by Baba’s father. Hikal shares were issued to Surajmukhi, an entity owned by their father, with the understanding that the shares would later be transferred to the Hiremaths.
However, Sugandha has sued her brother Baba for going back on their father’s wish and seeking a share of the entire wealth of the family. Baba has rejected the claim that such a share-transfer clause existed. The next hearing in the Bombay High Court is scheduled for October.
Currently, Baba and his family own 34 per cent stake in Hikal, while Hiremaths hold 35 per cent stake in the company.
Amid the family feud, the remote e-voting on Amit’s directorship will conclude on Monday, with the results to be declared on Tuesday evening, after the annual general meeting’s e-voting closes.
Shareholder advisory firms have given a contradicting advice on Amit’s reappointment. While Stakeholders Empowerment Services (SES) has recommended to vote in favour of the proposal, Institutional Investor Advisory Services (IiAS) has advised against it.
“We note that the promoters (Hiremath and Kalyani factions) are involved in a dispute regarding Hikal’s ownership. We expect them to relinquish their board positions, resolve the ownership dispute and then seek (re)appointments to the board again so as not to impact the overall functioning and decision making… and to shield the larger shareholder interest from a prolonged promoter dispute,” said IiAS.
Responding to IiAS, Kalyani Investment, which owns Baba family Hikal shares, said: “We clarify that the said dispute pertains to seeking specific performance of a purported family arrangement of 1994 between two Promoter groups. Amit Kalyani is not a signatory or a party to such purported family arrangement. Amit Kalyani has been made a party to the said dispute solely in capacity as Chairman of (a) Kalyani Investment Company Ltd and (b) BF Investment Ltd, and Director of Hikal.”
“We would further like to draw your attention to your September 2023 Report, wherein the resolution for re-appointment of Amit Kalyani… was supported by IiAS. The said Dispute was pending at that point in time as well (with Amit Kalyani being a party);, however, the same did not dissuade IiAS from supporting the re-appointment resolution and giving a positive recommendation,” the company said.
Published on September 22, 2025
