3P Land Holdings Limited has initiated a postal ballot process to seek member approval for continuing and modifying its material related party transaction with Biodegradable Products India Limited (BPIL). The proposal involves extending inter-corporate deposits (ICDs) up to ₹40 crore and securing this exposure through a joint mortgage over BPIL's immovable property.

The company holds 27.11% equity in BPIL, which is part of the promoter group. The existing ICD arrangement, currently unsecured, is proposed to be modified by creating a joint mortgage over a 22.93-acre land parcel at Village Chande, Pune. This security will rank pari passu with other related party lenders, including AMJ Land Holdings Limited, which will act as the Lead Mortgagee.

Transaction Terms and Security

The approval sought covers a period of five financial years, from FY27 to FY31. The aggregate principal amount outstanding under the ICDs extended by 3P Land to BPIL shall not exceed ₹40 crore at any point in time. Each ICD disbursed during this period will be repayable within six years from its respective date of disbursement.

The interest rate on these deposits will range from 9% to 12% per annum. Interest payments are due annually within three months from the close of each financial year. The proposed mortgage will secure the loans extended by 3P Land as well as other related party lenders, with an overall cap on secured obligations set at ₹200 crore for all mortgagees collectively.

Financial Position of BPIL

BPIL reported a turnover of ₹0.26 lakh and a loss after tax of ₹460.26 lakh in FY26. The entity's net worth stood at negative ₹3,020.52 lakh as of March 31, 2026. Despite the negative net worth, the company highlights that BPIL holds valuable land near Hinjewadi, Pune, valued at approximately ₹152.81 crore based on market value, or ₹122.25 crore at distress value.

What the Numbers Show

The transaction highlights a significant divergence between BPIL's operational performance and its asset-backed security coverage. While BPIL recorded negligible turnover and substantial losses in FY26, resulting in a negative net worth, the proposed mortgage relies heavily on the real estate value of its land holdings. The security coverage ratio at book value stands at 0.60 times, whereas it rises to 2.04 times when calculated against the distress value of the assets. This indicates that the lender's protection is primarily derived from the underlying property assets rather than the borrower's current cash flows or balance sheet strength.

The voting period for the postal ballot commenced on September 23, 2026, and will conclude on October 22, 2026. Results are expected to be announced on or before October 24, 2026.

Shareholders of 3P Land Holdings approved a series of material related-party transactions during its 61st Annual General Meeting (AGM) held on August 1, 2026. The resolutions authorized intercorporate deposits and the availing of common operational services with three key entities: Biodegradable Products India Limited, AMJ Land Holdings India Limited, and Pudumjee Paper Products Limited. These approvals facilitate ongoing capital deployment and shared service arrangements within the corporate group, ensuring regulatory compliance under SEBI’s listing obligations.

The meeting was conducted through Video Conference (VC) or Other Audio Visual Means (OAVM) without physical presence, with the deemed venue at the company’s registered office in Thergaon, Chinchwad, Pune. Gautam Nandkishore Jajodia, Chairman of the Board, chaired the proceedings. Four directors attended the meeting, while two were absent due to prior commitments. The statutory auditors, M/s. J. M. Agrawal & Company, represented by Mr. Punit Agrawal, and the secretarial auditors, M/s. Parikh and Associates, represented by Ms. Shalini Bhat, were present. Both audit firms confirmed no qualifications or adverse observations on the financial transactions for the year ended March 31, 2026.

The primary focus of the special business items involved approving material related-party transactions. The resolutions granted consent for granting and accepting/availing intercorporate deposits with Biodegradable Products India Limited, AMJ Land Holdings India Limited, and Pudumjee Paper Products Limited. Additionally, the shareholders approved agreements for availing common services, reimbursement of expenses, and other operational services from AMJ Land Holdings India Limited and Pudumjee Paper Products Limited. These transactions are critical for optimizing group resources and managing internal liquidity.

Under ordinary business, the shareholders adopted the audited standalone and consolidated financial statements for the financial year ended March 31, 2026. This included the balance sheet, statement of profit and loss, cash flow statement, and the reports of the Board of Directors and auditors. Furthermore, Ms. Vasudha Jatia (DIN: 06725426), who retired by rotation, was reappointed as a director after offering herself for re-election.

The voting process was supervised by Mr. Pankaj Bhanudas Yeole, Practicing Company Secretary, appointed as the scrutinizer. Remote e-voting concluded on July 31, 2026, at 5:00 p.m., while members attending the AGM could vote electronically within 15 minutes of the meeting's conclusion. The results were to be declared and uploaded to the company’s website, along with submissions to BSE, NSE, and NSDL, within 48 hours of the meeting's end. The AGM commenced at 11:00 a.m. and concluded at 11:30 a.m. IST.