Key Decision

Board of Directors of RRIL Limited approved the additional acquisition of up to 29,87,500 equity shares of ₹10 each of Sumati Spintex Private Limited from existing shareholders for an aggregate amount of up to ₹3,11,00,000 (Rupees Three Crore Eleven Lakhs only).

Transaction Details

  • Target Company: Sumati Spintex Private Limited
  • Shares to Acquire: Up to 29,87,500 equity shares of ₹10 each
  • Investment Amount: Up to ₹3,11,00,000
  • Percentage of Paid-up Capital: Additionally 25% of paid-up capital of Sumati Spintex Private Limited
  • Post-acquisition Holding: Total shareholding will reach 75% of SSPL
  • Consideration Type: Cash consideration
  • Completion Timeline: By September 30, 2026

Target Company Background

Sumati Spintex Private Limited is incorporated under the Companies Act, 1956 on March 29, 2013. The company is engaged in manufacturing of yarn with annual production capacity of approximately 5 lakh tons.

Financial Performance:

  • FY 2025 Turnover: ₹14,841.82 Lakhs (₹148.42 crore)
  • FY 2024 Turnover: ₹15,062.44 Lakhs (₹150.62 crore)
  • FY 2023 Turnover: ₹14,141.62 Lakhs (₹141.42 crore)

Country of Presence: India

Ownership Structure Post-acquisition

After this acquisition, RRIL Limited will hold up to 89,62,500 equity shares aggregating up to 75% of SSPL through:

  • Acquisition of 66,92,500 equity shares (56.00%) from existing shareholders of target company
  • 22,70,000 equity shares (19.00%) held by wholly owned subsidiary Raj Rajendra Industries Limited

Regulatory Aspects

  • Related Party Transaction: Yes, the acquisition falls within related party transactions
  • Interest: Common promoters and directors in the target company. Equity shares are being acquired from promoters & promoter group of company
  • Arm's Length: Transaction is conducted at "arm's length" price
  • Government Approvals: Not required

Rationale

The acquisition is for further strengthening greater control for better integration of business activities.

Board Meeting Details

  • Date: Saturday, July 11, 2026
  • Location: Registered office of the Company
  • Timing: Commenced at 5:15 p.m. and concluded at 5:45 p.m.

Dissemination

The information is being disseminated on the company's website at www.rrillimited.com.

#Tags #RRIL #SumatiSpintex #SEBIRegulation30 #M&A #RelatedPartyTransaction