Rajapalayam Mills Limited has released a pledge on 4,70,000 equity shares of The Ramco Cements Limited , reducing its encumbered stake in the cement manufacturer. The transaction, completed on July 24, 2026, was disclosed under Regulation 31(1) and 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The release signifies a de-leveraging event for the promoter group, as the shares were freed from encumbrance with Barclays Investments & Loans India Pvt. Ltd upon loan repayment.

The disclosure was submitted to both the National Stock Exchange of India Limited and BSE Limited by K. Maheswaran, Company Secretary of Rajapalayam Mills Limited. The filing confirms that the specific batch of 4,70,000 shares, which accounted for 0.20% of The Ramco Cements Limited's total share capital, is no longer pledged. This procedural update ensures transparency regarding the security status of promoter holdings in the listed entity.

Prior to this release, Rajapalayam Mills Limited held 3,21,69,264 shares in The Ramco Cements Limited, constituting 13.61% of the total share capital. Of this holding, 1,89,91,625 shares (8.04%) were previously encumbered. The current release reduces the number of encumbered shares to 1,85,21,625, bringing down the percentage of encumbered promoter holding to 7.84%. The total promoter group holding in The Ramco Cements Limited remains at 42.56%, with aggregate encumbered shares across all promoters standing at 2,17,12,489 (9.19%).

Promoter Holding Structure

The filing details the broader promoter group structure in The Ramco Cements Limited. Alongside Rajapalayam Mills Limited, other entities and individuals within the promoter group hold significant stakes. M/s. Ramco Industries Limited holds the largest portion at 5,15,66,295 shares (21.82%). Other notable holdings include Smt. Nalina Ramalakshmi (1.15%), Smt. Saradha Deepa (0.83%), and M/s. Sri Vishnu Shankar Mill Limited (1.31%).

What the Numbers Show

The reduction in encumbered shares for Rajapalayam Mills Limited indicates improved liquidity or debt servicing capability within that specific promoter entity. While the total promoter group holding remains stable at 42.56%, the decrease in pledged collateral from 9.39% to 9.19% suggests a marginal improvement in the financial flexibility of the promoter group. The continued presence of significant pledges across other group entities, such as Sri Vishnu Shankar Mill Limited and The Ramaraju Surgical Cotton Mills Limited, indicates that while one arm of the group is de-leveraging, others maintain existing security arrangements.

The disclosure does not indicate any change in the beneficial ownership structure, only the status of the encumbrance. Investors should note that the remaining encumbered shares across the promoter group still represent a substantial portion of the total capital, though the specific release by Rajapalayam Mills Limited removes a potential trigger point for forced sales in that particular segment.

Rajapalayam Mills Limited has created a pledge on 7,05,800 equity shares of The Ramco Cements Limited in favour of Tata Capital Limited. The encumbrance, dated July 23, 2026, serves as security for borrowing and increases the total number of encumbered shares held by the promoter group. This move raises the overall pledged stake of promoters and persons acting in concert (PACs) in The Ramco Cements Limited to 9.39% of the total share capital.

The disclosure was made under Regulation 31(1) and 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Rajapalayam Mills Limited notified both the National Stock Exchange of India Limited and BSE Limited regarding the creation of the encumbrance. Prior to this transaction, Rajapalayam Mills Limited already had 4,00,000 equity shares pledged, as mentioned in the initial notification letter, though the detailed schedule indicates a higher base of previously encumbered shares for the group.

Promoter Holding and Encumbrance Details

The filing provides a comprehensive breakdown of the promoter group's holdings and the extent of encumbrances. Rajapalayam Mills Limited holds 3,21,69,264 shares, representing 13.61% of The Ramco Cements Limited's total share capital. Following the new pledge, the total number of shares encumbered by Rajapalayam Mills Limited stands at 1,89,91,625, which is 8.04% of the total share capital.

Other entities within the promoter group also maintain pledged positions. The Ramaraju Surgical Cotton Mills Limited has 15,50,864 shares encumbered, while Sri Vishnu Shankar Mill Limited has 16,40,000 shares under pledge. Individual promoters such as Smt. Nalina Ramalakshmi, Smt. Saradha Deepa, and Shri Pusapadi Ramasubramania Raja Venketrama Raja hold significant stakes but currently report no encumbrances on their holdings according to this disclosure.

What the Numbers Show

The creation of this pledge indicates continued reliance on share-backed financing by a key promoter entity. With over 9% of the total share capital now encumbered across the promoter group, liquidity management remains a focal point for the holding structure. The specific allocation of the new pledge to Tata Capital Limited suggests a structured borrowing arrangement rather than an ad-hoc liquidity measure. Investors should monitor future disclosures for any changes in the pledge status or additional encumbrances that could affect the promoter's net worth position.