Sundaram Multi Pap Limited has informed the Exchange regarding 'Outcome of Board meeting held on March 05, 2026'.
SUNDARAM · price
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The Board of Directors of Sundaram Multi Pap Limited, at its meeting on March 5, 2026, decided not to proceed with a proposed preferential issue of 7,04,00,000 equity shares at ₹3.35 per share, which had earlier been approved by shareholders at an EGM held on November 12, 2025. The decision follows a communication from Sundaram Land and Assets Private Limited (SLAPL), the counterparty in a related share swap arrangement, dated February 27, 2026, expressing its intention not to go ahead with the swap transaction. As a result, the entire preferential issue has been formally withdrawn, and the company will not be issuing the planned fresh equity or receiving the associated capital infusion of approximately ₹23.58 crore.
Existing shareholders avoid equity dilution from the proposed 7.04 crore new shares, but the company also loses a planned capital raise and a potential strategic share-swap transaction, which could weigh negatively on near-term sentiment. Investors should watch for clarity on how the company plans to meet its funding or growth needs in the absence of this transaction.