Affordable Robotic & Automation Limited has informed the Exchange regarding Outcome of Board Meeting held on April 27, 2026.
AFFORDABLE · price
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The board approved a fund raise of up to INR 48 crore by ARAPL Raas Private Limited, the company's material subsidiary, through issuance of equity shares to Sai Green Projects Private Limited. As a result, the company's holding in ARAPL Raas will dilute from 83.54% (74.56% fully diluted) to 42.50% on a fully diluted basis, causing the subsidiary to become an associate company. The board also approved related party transactions: up to ₹50 crore interest-free loans from promoters and up to ₹100 crore in arm's length transactions with ARAPL Raas for working capital support. An Extra-Ordinary General Meeting will be convened via Postal Ballot to seek shareholder approval for these proposals.
The dilution from majority (83.54%) to minority (42.50%) stake in the subsidiary is significant and may trigger open offer obligations under SEBI regulations, potentially requiring an offer to minority shareholders. The company will lose control over ARAPL Raas, which currently contributes 1.08% of consolidated turnover and 27.40% of net worth.