AMJ Land Holdings Limited has issued a postal ballot notice seeking shareholder approval to continue and modify its existing revolving inter-corporate deposit (ICD) arrangement with Biodegradable Products India Limited (BPIL), a related party. The proposal caps the aggregate principal amount outstanding at ₹40 crore at any point in time for the period spanning FY27 through FY31.

The transaction involves securing the currently unsecured ICD exposure through a joint mortgage over BPIL’s immovable property. This property, located at Village Chande near Hinjewadi, Pune, spans approximately 22.93 acres. The mortgage will rank pari passu with other related-party lenders, including 3P Land Holdings Limited, Thacker and Company Limited, Chem Mach Private Limited, and Suma Commercial Private Limited. The overall aggregate obligations secured under this joint mortgage deed are capped at ₹200 crore for all mortgagees collectively.

Transaction Terms and Security Structure

The proposed resolution allows the Board to extend ICDs to BPIL for working capital and operational requirements. Each ICD disbursed during the five-year window must be repayable within six years from its respective disbursement date. Interest rates on these deposits will range between 9% p.a. and 12% p.a., determined by the Board in accordance with the ICD arrangement terms. Interest payments are due annually within three months from the close of each financial year.

The security coverage ratio for BPIL’s outstanding borrowings is reported at 0.60 times based on book value and 2.04 times based on distress value as of March 31, 2026. The valuation report dated July 23, 2026, values the mortgaged property at approximately ₹152.81 crore, with a distress value of ₹122.25 crore.

What the Numbers Show

A critical divergence exists between BPIL’s operational performance and its asset-backed security profile. For FY26, BPIL reported a turnover of just ₹0.26 lakh against a loss after tax of ₹460.26 lakh, resulting in a negative net worth of ₹3,020.52 lakh. Despite this lack of operating cash flow generation, the company holds significant real estate assets. The proposed modification shifts the risk profile for AMJ Land from an unsecured credit exposure to a secured position backed by land assets valued significantly higher than the company’s book equity, effectively collateralizing the loan against real estate rather than business earnings.

Shareholder Voting Details

Shareholders can cast their votes electronically via remote e-voting from September 23, 2026, at 9:00 am to October 22, 2026, at 5:00 pm. The cut-off date for eligibility is September 18, 2026. KFin Technologies Limited has been appointed as the registrar and share transfer agent to facilitate the e-voting process. The results of the postal ballot will be announced on or before October 24, 2026.

AMJ Land Holdings has accepted the resignation of Sahil Dudani from his roles as Company Secretary and Compliance Officer. The exit is effective September 18, 2026.

Dudani cited personal reasons for stepping down from his position as a Key Managerial Personnel. The company disclosed the change in a filing to the National Stock Exchange of India Ltd and BSE Ltd on September 18, 2026.

Regulatory Disclosure

The intimation was issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure also references SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.

Surendra Kumar Bansal, Director – Finance, signed the communication on behalf of the board. The filing confirms that Dudani will be relieved of his duties with immediate effect from the specified date.