Submission of Postal Ballot Notice dt 29-08-2025.
RAJPALAYAM · price
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Rajapalayam Mills has issued a Postal Ballot Notice dated August 29, 2025, seeking shareholder approval through remote e-voting from September 10 to October 9, 2025, on six resolutions. Four ordinary resolutions cover material related party transactions with group companies — Ramco Industries, Sandhya Spinning Mill, Sri Vishnu Shankar Mill, and Ramaraju Surgical Cotton Mills — each capped at Rs. 450 Crores over FY 2025-26 to 2027-28, representing about 50.08% of annual consolidated turnover. These transactions involve purchase/sale of cotton, yarn, textiles, job work, building materials, and corporate guarantees. A special resolution seeks approval to make investments, give loans, or provide guarantees up to Rs. 150 Crores beyond the Section 186 limits. Another special resolution proposes the re-appointment of Justice Smt. Chitra Venkataraman (Retd.) as a Non-Executive Independent Director for a second five-year term ending August 29, 2030.
This is largely a routine regulatory compliance exercise since related party dealings with promoter-group companies exceed the materiality threshold and require shareholder approval. No change in control or strategic shift is indicated — these are continuing business transactions. Investors should note the significant scale (Rs. 450 Crore per counterparty) and review the arm's-length basis of these deals, though the promoter group's strong cross-holding suggests routine approval is likely.