vamshi rubber has initiated a postal ballot process to seek shareholder approval for the substantial sale of its whole undertaking. The Board of Directors granted in-principle approval for the sale on July 8, 2026, following a review of strategic options to enhance shareholder value. The decision comes as the company faces a secular decline in its retread material business due to structural and technological shifts in the commercial vehicle tyre industry.

The proposed sale constitutes the disposal of the whole or substantially the whole of the undertaking under Section 180(1)(a) of the Companies Act, 2013. The company has not yet identified a buyer or determined the sale consideration. An Independent Registered Valuer will be appointed to determine the fair market value, and an Advisor will be engaged to identify suitable buyers. The transaction is subject to Regulation 37A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, requiring public shareholder approval.

The Board identified several factors driving the decline of the retread business, including the radialisation of commercial vehicle tyres, which has increased tyre life and reduced retreading frequency. Improved road infrastructure, increased vehicle loads without a proportional increase in tyres, and the rise of electric buses with higher retread failure rates have further compressed the addressable market. Additionally, the retreading industry faces structural fragmentation and credit risks.

Funds received from the sale will be utilised primarily for the repayment or reduction of existing borrowings and for exploring other business opportunities aligned with the company's main objects. The company also plans to appoint outside agencies to review existing business operations and provide objective advice. The authority conferred on the Board by the resolution will be valid for 12 months from the date of passing the Special Resolution.

E-voting Schedule

The company has engaged Central Depository Services Limited (CDSL) to facilitate remote e-voting. The facility is available to members whose names appeared in the Register of Members as on the cut-off date of Friday, July 10, 2026.

Mr. N.V.S.S. Suryanarayana Rao, Practicing Company Secretary, has been appointed as the Scrutinizer to conduct the postal ballot. The results of the voting will be announced on or before Wednesday, August 19, 2026. Shareholders can cast their votes through the CDSL e-voting system or via their depository participants.

Vamshi Rubber Ltd has approved a proposal for the substantial sale of its entire undertaking due to a continued decline in the performance of its retreading business. The board cited structural and technological shifts in the tyre industry, resulting in a diminishing pool of retreadable tyre casings and no further growth opportunity in the retreading business. The non-viability of deploying the company's existing manufacturing unit for any other line of business also contributed to the decision.

The board's decision, taken at its meeting held on July 08, 2026, is subject to the approval of shareholders by way of a Special Resolution through a Postal Ballot. The company has approved the draft Postal Ballot Notice and the explanatory statement thereto in accordance with Section 110 of the Companies Act, 2013 and Regulation 44 of the SEBI Listing Regulations.

To facilitate the process, the board approved the appointment of one or more independent professional agencies, including a Registered Valuer. These entities will undertake an objective assessment of existing business operations, determine the fair value of the undertaking or assets, evaluate strategic alternatives, and advise the board on the most appropriate course of action.

Additionally, the board appointed an Advisor to assist vamshi rubber in identifying suitable counterparties in relation to the strategic alternatives being evaluated. The appointment is subject to the board's further consideration and approval of any proposal that may emerge.

The approvals are in-principle in nature and are intended solely to facilitate the evaluation of strategic alternatives. Any proposal resulting from this evaluation will require further consideration and approval by the Board of Directors and necessary statutory, regulatory, and shareholder approvals. The company stated it would provide necessary disclosures as and when any material event or transaction is finalized.