Ponni Sugars (Erode) Limited has informed the Exchange regarding Notice of Postal Ballot
PONNIERODE · price
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Awaiting price reaction for this filing.
Ponni Sugars is seeking shareholder approval via postal ballot (e-voting from 5 Nov to 4 Dec 2025) for a new Comprehensive MoU with its promoter Seshasayee Paper and Boards Ltd (SPB), replacing all existing MoUs between the two firms. SPB holds 32.35% in Ponni, while Ponni holds 14.02% in SPB, making them associates. The MoU covers sale/purchase of bagasse, sugar, fuel, power, water and other products, plus services and common expenses, capped at Rs. 60 crores per financial year for five years (1 Jan 2026 to 31 Dec 2030). The transactions qualify as material RPTs as they are expected to cross 10% of Ponni's turnover, triggering SEBI's shareholder approval requirement under revised industry standards dated 26 June 2025. Related parties will not be entitled to vote on this resolution. Bagasse pricing remains formula-based on alternative fuel cost plus a 5% incentive capped at Rs. 125/tonne, preserving the long-standing arrangement that has been the foundation of Ponni's business since SPB promoted the Erode Sugar Mill in 1984.
This is a routine governance and compliance filing to formalize ongoing related party transactions with the promoter group under new SEBI rules; the bagasse supply arrangement is structural and long-standing, so material impact on operations or shareholder value is unlikely, though minority shareholders should note that related parties (including promoter SPB) are barred from voting on this resolution.