Rajapalayam Mills Limited has announced the creation of a pledge on 3,60,000 shares of Ramco Industries Limited in favour of Barclays Investments & Loans India Pvt. Ltd on 24-03-2026. This disclosure was made under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Pledge Details

The new pledge is in addition to the existing pledge of 1,40,000 shares that Rajapalayam Mills Limited had already created. The pledge was established as additional comfort for borrowing requirements.

Holdings and Encumbrance Summary

Rajapalayam Mills Limited holds a significant stake in Ramco Industries Limited with detailed encumbrance information as follows:

Promoter Group Holdings

The disclosure also provides comprehensive details of the entire promoter group's holdings in Ramco Industries Limited. The total promoter group holding stands at 4,75,76,701 shares, representing 54.79% of the total share capital. Key individual holdings include:

• Shri P.R. Venketrama Raja: 1,45,08,424 shares (16.71%)
• M/s. Ramco Management Private Limited: 1,25,98,800 shares (14.51%)
• Rajapalayam Mills Limited: 1,22,93,180 shares (14.16%)
• Smt. Saradha Deepa: 35,26,824 shares (4.06%)

Regulatory Compliance

The disclosure was made on 25-03-2026 to both the National Stock Exchange of India Limited and BSE Limited, where Ramco Industries Limited shares are listed. This announcement ensures compliance with SEBI regulations regarding substantial acquisition of shares and takeovers, specifically addressing the creation of encumbrances on promoter holdings.

The pledge creation represents a standard corporate finance practice where shares are used as collateral for borrowing arrangements, providing additional security to lenders while maintaining the promoter's ownership structure in the target company.

Ramco Industries Limited has informed stock exchanges about receiving a penalty order from the Income Tax Department, disclosing the development under regulatory compliance requirements. The company received the order on March 26, 2026, at 14:41 PM from the Assessment Unit of the Income Tax Department.

Penalty Details

The penalty order pertains to Assessment Year 2017-18 and involves significant financial implications for the company. The following table summarizes the key aspects of the penalty:

Nature of Violation

The penalty has been imposed under Section 270A of the Income Tax Act. The violation stems from a difference in interpretation concerning the disallowance made under Section 14A of the Income Tax Act. This section typically deals with expenditure incurred in relation to income that does not form part of total income.

Regulatory Compliance

The disclosure has been made in compliance with Regulation 30 of SEBI LODR, specifically under sub-para 20 of para A of Part A of Schedule III, which mandates disclosure of imposition of fine or penalty. The company has provided comprehensive details about the authority, nature of action, violation details, and financial impact as required under the regulatory framework.

Company's Response

Ramco Industries has indicated its intention to file an appeal against this penalty order. The company appears to contest the interpretation that led to the penalty imposition, suggesting disagreement with the tax authority's assessment regarding Section 14A disallowance provisions.

Financial Impact

The penalty amount of ₹23.79 lakhs represents the direct monetary impact on the company. This amount reflects 200% of the underlying tax amount of ₹11.89 lakhs, as prescribed under the penalty provisions of Section 270A of the Income Tax Act.