Capricorn Systems Global Solutions Ltd (CSGL), a Hyderabad-based listed entity, has approved a merger with Radical Bio-Organics Ltd (RBOL) as part of its diversification strategy to exit the IT-enabled services business and enter high-growth distillery and chemical manufacturing segments.
On April 11, 2026 the board approved the merger with a 1:1 share exchange ratio. Post-merger, CSGL will be dissolved and the combined entity will be renamed as Radical Bio-Organics Ltd, focusing on the production and sale of ethanol and extra neutral alcohol.
Strategic shift to high-growth sectors
CSGL, engaged in IT services and related activities, stated that it has been unable to sustain its existing business operations, prompting the strategic move.
RBOL operates in the manufacturing of extra neutral alcohol, rectified spirits and various grades of ethanol catering to industrial and potable applications, along with supply to organic production companies.
Strong operating base of RBOL
RBOL has an installed capacity of 90 KLD distillery along with a 3 MW co-generation power plant. It also produces by-products such as Dried Distiller Grain with Soluble and solid carbon dioxide.
As of February 2026, CSGL reported assets of ₹29 crore with a turnover of ₹21 crore, while RBOL had assets of ₹226 crore and turnover of ₹452 crore, indicating a significantly larger operating scale.
Rationale for amalgamation
The company said RBOL’s established presence and operational expertise in the distillery segment will provide immediate access to a profitable and high-growth business, reducing the gestation period for entering the sector.
The merger is expected to ensure steady revenue streams, strengthen financial health, unlock shareholders’ value and create a larger, sustainable entity for long-term growth.