The Board subject to approval of members in ensuing Annual General Meeting approved the proposal for the partial sale of certain machinery detailed in Annexures, which may exceed 20% of ....
Awaiting price reaction for this filing.
The board approved a partial sale of 10,080 spindles and 32 looms, subject to shareholder approval at the upcoming AGM. The spindles being sold contributed Rs. 3,092.40 lakhs, or about 30% of the company's revenue in the last financial year. The 32 looms are from a textile business recently bought from Mahaalaxmi Texpro Limited and contributed no revenue. The sale is part of a modernization plan where old machinery will be replaced with newer, more efficient equipment. The company is strategically shifting from pure spinning to a composite textile unit (its 'Fiber to Fabric' goal) to improve margins and reduce operating costs. Expected completion is by March 31, 2026, with buyers yet to be identified — all will be unrelated parties at market price.
Existing shareholders should watch for the AGM vote outcome, as the sale needs special resolution approval (including a public shareholder majority). If completed, proceeds will fund newer machinery and support a move toward higher-margin composite textiles, but there could be a temporary dip in spinning output during the transition.