Rane (Madras) Limited has scheduled its 22nd Annual General Meeting for August 5, 2026, through Video Conferencing. The Board of Directors has recommended a dividend of ₹16 per equity share, or 160%, for the financial year ended March 31, 2026. The dividend will be paid to shareholders whose names appear in the register of members as on the record date of July 29, 2026.

The meeting will be held to transact ordinary business, including the adoption of audited financial statements and the declaration of dividends. Special business includes the ratification of the remuneration of the Cost Auditor and the appointment of Independent Directors. The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate remote e-voting and the virtual meeting facility.

Key AGM Dates

Director Appointments

The Board proposes the re-appointment of Mr. Ramesh Rajan Natarajan as an Independent Director for a second term of five years effective May 21, 2026. Additionally, Mr. Ramkumar Lakshminarayanan has been appointed as an Additional Director in the Independent Director category effective July 1, 2026, and his appointment as an Independent Director for a first term up to April 8, 2031, will be placed before shareholders for approval. Mr. Ganesh Lakshminarayan retires by rotation and is eligible for re-appointment.

The company has dispatched the Annual Report for FY 2025-26 and the Notice of the 22nd AGM to shareholders. The documents are also available on the company website. Shareholders holding physical shares were reminded to update bank details and dematerialise their securities to ensure seamless dividend payments.

Rane (Madras) Limited has entered into a Business Transfer Agreement with Hindustan Composites Limited to acquire the latter's Friction Business Undertaking as a going concern on a slump sale basis for a lump sum cash consideration of ₹370 crore. The transaction, approved by the Board of Directors on June 30, 2026, is expected to close by the end of the second quarter, subject to customary closing conditions. This strategic move is designed to establish Rane (Madras) as a market leader across all major segments of the automotive components industry by creating a friction materials business with an aggregate revenue of over ₹1,000 crore.

Financial and Operational Impact

The acquisition includes the transfer of assets, liabilities, contracts, licenses, and employees associated with the friction business. For the financial year ended March 31, 2026, the Hindustan Composites Friction Business reported a turnover of ₹315.04 crore and a Profit Before Tax (PBT) of ₹40.29 crore. This unit contributed 84% of Hindustan Composites' total turnover of ₹375.01 crore for the same period. The deal is structured on a cash-free and debt-free basis, with the consideration payable upon closing, subject to adjustments specified in the agreement.

The following table summarizes the key financial metrics of the acquired business:

Strategic Rationale and Synergies

Management stated that the acquisition leverages Rane (Madras)'s established leadership in the friction business, which currently spans passenger vehicles, two-wheelers, aftermarket, and railways. The transaction is expected to unlock substantial operational synergies through manufacturing scale, an expanded distribution network, and enhanced R&D capabilities. Additionally, Rane (Madras) acquires the "COMPO" brand, reinforcing its leadership position and expanding its reach across distributors, fleet operators, and aftermarket channels.

Transaction Details

The agreement includes non-compete and non-solicit restrictions on the parties post-closing. The transaction does not fall under related party transactions and is being executed outside a scheme of arrangement. The target entity operates two manufacturing facilities in Paithan and Bhandara, Maharashtra, and has over six decades of experience in the sector.