Aditya Ispat Limited has successfully executed a Business Transfer Agreement (BTA) with Jai Bapji Ispat Private Limited for the slump sale of its manufacturing and trading activity of non-alloy steel business. The company disclosed comprehensive transaction details to BSE on March 31, 2026, following the execution of the agreement and completion of the postal ballot process that achieved overwhelming shareholder approval.

Business Transfer Agreement Execution

The company executed the BTA on March 31, 2026, with Jai Bapji Ispat Private Limited, a related party and promoter group company. The transaction involves the slump sale of the manufacturing and trading activity of non-alloy steel business on a going concern basis, effective from March 1, 2026.

Financial Impact and Business Rationale

The slump sale unit contributed significantly to the company's operations during the last financial year. The transaction represents a strategic restructuring initiative aimed at addressing sustained losses and improving the company's financial position.

The company cited sustained losses primarily attributable to high finance costs, declining margins in the non-alloy steel segment, and adverse industry conditions as key factors driving the decision. The accumulated losses have resulted in substantial erosion of net worth and weakening of the financial position.

Transferee Company Profile

Jai Bapji Ispat Private Limited, the acquiring entity, is engaged in trading of non-alloy steel and alloy steel. The company's financial profile for FY 2024-25 shows modest operations compared to the transferor.

Postal Ballot Results and Regulatory Compliance

The transaction received overwhelming shareholder approval through the postal ballot process concluded on March 29, 2026. The voting results demonstrated strong confidence in the company's strategic restructuring decision.

The company has fulfilled all regulatory requirements under Regulation 30 of SEBI Listing Regulations and submitted comprehensive disclosures including the scrutinizer's report. The transaction is being undertaken at arm's length pricing despite being with a related party. The consideration amount of ₹3,67,63,000 will be subject to further adjustments of net working capital up to February 28, 2026.

Aditya Ispat Limited has announced significant board changes following a board meeting held on March 23, 2026. The company appointed Mr. Vemula Jalaprasad as Additional Director and Executive Director, while formally acknowledging the recent resignation of Mrs. Usha Chachan from her position as Non-Executive Non-Independent Director.

Board Meeting Outcomes

The Board of Directors convened at the company's registered office in Hyderabad on March 23, 2026, from 18:00 Hrs to 19:45 Hrs to address key directorship changes. The meeting was conducted in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

New Director Appointment Details

The board, based on recommendations from the Nomination and Remuneration Committee, approved the appointment of Mr. Vemula Jalaprasad (DIN: 11358329) in dual capacity. He will serve as Additional Director with immediate effect and as Executive Director for a three-year term, subject to shareholder approval at the next Annual General Meeting.

Director Profile and Qualifications

Mr. Vemula Jalaprasad brings extensive expertise to the board with his Postgraduate degree in Structural Engineering from Jawaharlal Nehru Technological University, Kakinada. He possesses over a decade of experience in infrastructure and project management, focusing on engineering precision, operational excellence, and sustainable development. His leadership approach integrates strategic planning, resource optimization, and strict quality control to deliver high-quality, reliable, and cost-effective solutions.

Regulatory Compliance and Documentation

The company confirmed that Mr. Jalaprasad has not been debarred from holding directorship by SEBI or any other authority, as required under BSE and NSE circulars. The board also formally acknowledged Mrs. Usha Chachan's resignation (DIN: 02304178) due to personal reasons, effective March 20, 2026, which was previously communicated to the Bombay Stock Exchange on March 21, 2026.

CS Varsha Pandey, Company Secretary cum Compliance Officer (Membership No. A72878), digitally signed the disclosure documents, ensuring complete regulatory compliance and transparency for all stakeholders.