Date: 12 August 2026
Board Meeting Outcomes
The Board of Directors, in a meeting held on 12 August 2026, approved the following key decisions as a continuation of its earlier resolution from 21 July 2025 to close the Iron & Steel Plant operations:
- Proposal to seek member approval under Section 180(1)(a) of the Companies Act, 2013 for strategic alternatives relating to the company's Steel Plant undertaking.
- Proposal to seek member approval for the sale, lease, development, redevelopment, joint development, or other monetization of the company's land, buildings, and other immovable assets.
Strategic Review and Proposed Restructuring
A. Strategic Alternatives for Steel Plant Undertaking
- Nature of Transaction: Seeking member approval to enable the board to consider strategic alternatives for the Steel Plant operations.
- Details: The board seeks flexibility to evaluate options including induction of strategic/financial investors, technology partners, lease, relocation, sale, transfer, or disposal of plant and machinery, joint ventures, partnerships, and other commercial arrangements.
- Valuation: A valuation report for Plant, Machinery, and Equipment at the Santej location was obtained from Mr. Vatsalraj J. Dabhi (IBBI Registered Valuer, Registration No. IBBI/RV/02/2022/15167). The Fair Market Value, using the Cost Approach – Depreciated Replacement Cost Method, was reported as ₹44,19,50,000 (₹44.19 crore) as of the valuation date 31 March 2026 (Report dated 30 April 2026). This is an indicative valuation and not a minimum sale price.
- Current Status: No specific purchaser, investor, partner, or counterparty has been identified. No transaction value or completion date is ascertainable.
- Shareholder Approval: Approval will be sought via a Special Resolution at the 36th Annual General Meeting (AGM).
B. Monetization of Land, Buildings, and Immovable Assets
- Nature of Transaction: Seeking member approval for the sale, lease, development, redevelopment, joint development, or other monetization of the company's land and buildings.
- Details: The board proposes authorization to deal with immovable properties through various modes including outright sale, lease, development agreements, joint ventures, or revenue-sharing arrangements.
- Purpose: To optimize utilization, unlock value, and deploy resources towards real estate/infrastructure projects, strategic investments, business acquisitions, technology upgradation, capex, working capital, or liability reduction.
- Valuation: No valuation for land or buildings has been stated in the AGM notice. A separate valuation may be obtained if necessary.
- Current Status: No specific purchaser, developer, lessee, or counterparty has been identified. No transaction value or completion date is ascertainable.
- Shareholder Approval: Approval will be sought via a Special Resolution at the 36th AGM.
Clarifications and Disclaimers
- The disclosed valuation of ₹44.19 crore pertains only to Plant, Machinery, and Equipment at Santej, not land and buildings.
- The company has not committed to any specific purchaser, partner, or transaction as of the disclosure date.
- Any future transaction with a related party shall be subject to applicable laws and regulations.
- Compliance with SEBI LODR Regulation 37A shall be undertaken where applicable at the time of a specific transaction.
KMP / Board / Auditor Changes
Not Specified
Dividend Declaration or Non-Declaration
Not Specified
Financial Results
Not Specified
Auditor’s Report
Not Specified
Disinvestment / Strategic Actions
Not Specified
Other Operational / Legal / Strategic Disclosures
The rationale for the plant closure and proposed restructuring, as noted by the board, is that the existing plant and machinery had become aged, the technology obsolete, and consequently, the operations had ceased to remain competitive and cost-effective.