Aro Granite Industries Ltd shareholders approved the slump sale of its Jaipur Unit through a postal ballot process concluded on October 20, 2026. The special resolution received overwhelming support, with 98.49% of votes polled in favor.

The voting results were filed with stock exchanges on October 21, 2026, pursuant to Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company also secured approval for a related party transaction with Aro Granite International INC. USA in the same voting cycle.

Voting outcomes

The postal ballot covered two distinct resolutions: a special resolution for the asset divestiture and an ordinary resolution for the related party transaction. Both measures passed with requisite majorities, driven entirely by public shareholder participation as promoters abstained from voting due to their interest in the matters.

The total number of shareholders on the record date was 11,684. The remote e-voting facility, managed by Central Depository Services (India) Limited, saw participation from public shareholders holding 9,014,344 shares out of the total outstanding equity.

What the numbers show

A notable pattern emerged in the voting behavior: while the promoter group holds 6,285,656 shares, they cast zero votes on both resolutions, citing their interest in the agenda items. Consequently, the entire voting base consisted of public shareholders. Despite representing only 7.24% of the outstanding shares, this group’s turnout was decisive, with nearly 98.5% supporting both the asset sale and the related party transaction. This indicates strong alignment between the management’s strategic direction and the sentiment of the retail investor base regarding these specific corporate actions.

Aro Granite Industries has initiated a postal ballot process to seek shareholder approval for the slump sale of its existing Jaipur unit to United Stones Private Limited. The transaction, valued at ₹67.00 crore, represents a strategic move to monetize a non-core asset and unlock trapped economic capital.

The Board of Directors recommended the resolution in its meeting held on September 7, 2026. The sale requires approval as a special resolution under Section 180(1)(a) of the Companies Act, 2013 and Regulation 37A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Transaction Valuation and Rationale

The proposed consideration of ₹67.00 crore exceeds the fair value of the industrial property as determined by two independent registered valuers. Mr. O.P. Verma valued the unit at ₹62.56 crore in a report dated September 1, 2026, while M/s. D.K. Nagpal & Associates assigned a fair value of ₹63.28 crore in a report dated August 31, 2026. Both valuations employed the market approach.

The company cites several rationales for the disposal, including a focus on core business segments, better realization of value compared to continued operations, and the use of proceeds for debt reduction and working capital. Management expects the streamlined balance sheet to improve return ratios such as ROCE and ROE.

Related Party Transactions

The postal ballot also seeks approval for ordinary resolutions regarding related party transactions with Aro Granite International Inc. USA (AGI). AGI functions as the company’s export marketing and distribution arm in the United States. The proposed transactions involve the sale of granite tiles, slabs, and quartz slabs on an arm’s length basis.

For FY26-27, the aggregate value of these transactions is capped at ₹5,000 lakh. While this amount does not exceed the materiality threshold of 10% of the annual consolidated turnover under SEBI Listing Regulations, the company is seeking shareholder approval as a matter of abundant caution. In FY25-26, transactions with AGI totaled ₹567.96 lakh, rising to ₹427.43 lakh in the current financial year up to the quarter preceding the approval request.

Voting Schedule

Shareholders holding shares as of the cut-off date, September 11, 2026, are eligible to vote via remote e-voting through CDSL. The voting period commences on September 21, 2026, at 10:00 am and concludes on October 20, 2026, at 5:00 pm. Results will be declared on or before October 22, 2026.

What the Numbers Show

The proposed sale price commands a premium of approximately 7% over the higher of the two independent valuations (₹63.28 crore). This premium suggests strong buyer interest or strategic value attached to the Mahindra World City SEZ plot, potentially allowing Aro Granite Industries to realize more than the standalone asset value estimated by valuers.