Subam Papers Limited has entered into a lease agreement with its unlisted wholly owned subsidiary, Subam Paper and Boards Private Limited, on July 22, 2026. The disclosure is made pursuant to Regulation 30 of the SEBI Listing Regulations, read with Para B of Part A of Schedule III and SEBI Circular No. SEBI/HO/CFD/CFD-PoD-2/P/CIR/2025/25 dated February 25, 2025.
Transaction Details
- Counterparty: Subam Paper and Boards Private Limited (Wholly Owned Subsidiary)
- Transaction Type: Related party transaction (exempt from shareholder approval under Regulation 23(5)(t) of SEBI LODR)
- Promoter Interest: No interest other than the company's 100% shareholding in the subsidiary
- Transaction Basis: Arm's length
Assets Leased
The lease covers paper manufacturing plant machinery and a co-generation power plant located at S.F. No. 128, 129, 140, 141, 142, Vaduganpatti Village, Pettai, Tirunelveli, Tamil Nadu, India, 627010.
Lease Terms
- Lease Rent:
- INR 2 crore (Rupees Two Crore) for paper production plant and machinery, effective from August 1, 2026
- INR 1 crore (Rupees One Crore) for power generation, effective from the date of power generation commencement
- Total Lease Consideration: INR 3 crore
- Lease Tenure: 11 months (August 1, 2026 to June 30, 2027)
- Renewal Option: Yes
Purpose and Impact
The transaction aims to expand operational capacity and optimize group infrastructure. The financial impact includes lease rental payments totaling INR 3 crore during the lease period.
Approvals and Compliance
The transaction has been reviewed and approved by the board of directors of Subam Papers Limited. It is exempt from the requirement of prior shareholder approval as per Regulation 23(5)(t) of SEBI LODR, which exempts transactions between a holding company and its wholly owned subsidiary.