RHI Magnesita India Refractories Limited (RHIMIRL), a wholly owned subsidiary of rhi magnesita , has approved the sale of assets related to its manufacturing facility in Bhilai, Chhattisgarh. The Board of Directors of RHIMIRL granted the approval on May 20, 2026, to sell the industrial land of the plant along with the fixed plant and machinery included therein.

Closure of Operations

The sale of these assets follows the company's previous decision to discontinue operations at the Bhilai plant. The manufacturing facility was officially closed effective May 31, 2024. The recent board approval marks the next step in the process of divesting the physical assets associated with the discontinued site.

Transaction Details

The disclosure regarding the asset sale was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The communication confirms that the sale encompasses both the land and the fixed machinery that formed an integral part of the industrial operations at the location.

The company has stated that this information is being provided for the necessary records and compliance purposes.

RHI Magnesita India Ltd has initiated a postal ballot process to seek shareholder approval for material related party transactions with RHI Magnesita GmbH. The resolutions propose entering into contracts for the sale of products, purchase of materials and raw goods, and the rendering of intercompany services for a period of three years commencing from financial year 2026-27.

Key Dates for Postal Ballot

The company has established a specific timeline for the e-voting process. The remote e-voting period is scheduled to commence at 9:00 a.m. IST on Saturday, May 23, 2026, and will conclude at 5:00 p.m. IST on Sunday, June 21, 2026. The results of the postal ballot are expected to be declared on or before June 23, 2026.

Details of Proposed Transactions

The resolutions seek approval for various transactions with RHI Magnesita GmbH, a fellow subsidiary and related party. These include the sale of products, purchase of materials and traded goods, raw materials, spares, and plant and machinery. Additionally, the company seeks approval for rendering and availing intercompany services, such as business support, R&D, and IT services, as well as the payment of royalty.

The estimated annual values for the proposed transactions vary across the financial years. For instance, the estimated annual value for the sale of products is INR 50,000 lakhs for FY 2026-27, rising to INR 75,000 lakhs by FY 2028-29. The purchase of raw materials is estimated at INR 60,000 lakhs for FY 2026-27, increasing to INR 69,984 lakhs in FY 2028-29.

Regulatory and Governance Details

Mr. Naresh Verma of M/s. Naresh Verma and Associates has been appointed as the Scrutinizer to conduct the postal ballot. The Audit Committee and the Board of Directors have reviewed and approved the proposals, determining that the transactions are in the ordinary course of business and on arm's length terms. The company has stated that these transactions will provide operational efficiencies and synergies, ensuring an integrated supply chain and optimal cost structure.