Notice of Postal Ballot dated 14th May 2025 is annexed herewith.
Awaiting price reaction for this filing.
Binny Limited has sent a Postal Ballot notice to shareholders seeking approval for a Second Amended & Reinstated Joint Development Agreement (JDA) with M/s. SPR Construction Pvt. Ltd. (SPR Group) for developing an Integrated Township on its 62.74-acre land at New Farrance Road, Perambur, Chennai. The revised JDA settles a long-running legal and arbitral dispute between Binny and SPR over accounting and revenue recognition issues from the original JDA. A Special Committee under Retd. Justice Shri Bhaskar had mediated the settlement, and the Board approved the Term Sheet and revised agreement on January 23, 2025 and March 6, 2025 respectively. Under the new terms, up to 53.18 lakh sq. ft. of saleable area will be settled through a lump sum payment (after adjusting prior payments), while the balance area from a total of 120 lakh sq. ft. (including Premium FSI) will be developed under an area-sharing model. The voting window runs from June 5, 2025 to July 4, 2025, with results to be declared by July 8, 2025.
Resolution of the prolonged legal dispute removes a major overhang and unlocks development of a large Chennai land parcel, potentially unlocking significant value for shareholders. However, the lump sum settlement and area-sharing model mean Binny forgoes some upside from the township. SPR, holding 16.88% in Binny, is barred from voting on this resolution, so the outcome will depend largely on minority public shareholder support.