Vraj Iron and Steel 's board has approved the sale of a 13.20% stake in MVK Industries to promoter entity Gopal Sponge for ₹4.55 crore.

Transaction details

The board's approval marks a divestment of the company's minority holding in MVK Industries to a promoter-affiliated entity. The key parameters of the transaction are outlined below.

Strategic rationale and compliance

The investment in MVK Industries Private Limited is classified as a non-core asset acquired prior to Vraj Iron's listing. The company stated that the holding has not generated recurring income. Proceeds from the sale will be utilized for ongoing expansion projects.

The transaction constitutes a Related Party Transaction under the Companies Act, 2013, and SEBI LODR Regulations, as the buyer, Gopal Sponge and Power Private Limited, is the Promoter and Holding Company of Vraj Iron. The deal was executed at an arm's length basis, with the price set at book value plus a 25% premium.

Key financial metrics

The following details from the regulatory filing provide further context on the valuation and timeline:

• Share Count: 3,96,000 equity shares
• Price Per Share: ₹115
• Valuation Basis: Book value plus 25% premium
• Completion Date: October 31, 2026
• Net Worth Contribution: The stake represented 0.57% of the company's total net worth (₹2.34 crore) in the last financial year.

Vraj Iron and Steel shareholders approved all five ordinary resolutions at the company’s 22nd Annual General Meeting held on September 12, 2026. The meeting, chaired by Mr. Vijay Anand Jhanwar, concluded at 2:30 pm after addressing member queries.

The gathering focused on adopting audited financial statements for FY26 and approving key corporate governance matters. Thirty-two members attended the physical session at Manch Auditorium in Raipur, Chhattisgarh. Remote e-voting was available from September 9 to September 11, 2026.

Voting Results Overview

All resolutions were passed with requisite majority. The promoters and promoter group, holding 24,721,720 shares, voted 100% in favour of the first four resolutions. Public non-institutional shareholders participated actively via remote e-voting and physical polls.

Governance and Compliance

Mr. Prasant Kumar Mohta was re-appointed as a director retiring by rotation. Mr. Praveen Somani was re-appointed as whole-time director for five consecutive financial years. The cost auditor remuneration for FY27 was also ratified.

Regarding the material related-party guarantee transactions, Mr. Vijay Anand Jhanwar recused himself from voting due to a conflict of interest. Mr. Prasant Kumar Mohta served as chairman for that specific resolution. The promoters did not vote on this item, resulting in a lower total vote count compared to other resolutions. The statutory and secretarial audit reports for FY26 contained no qualifications or adverse observations.