WS Industries approves binding term sheet for Chennai senior living project

W.S. Industries (India) Limited has entered a binding tripartite agreement to develop a senior living residential project in Chennai, marking its expansion into the senior care segment. The Board of Directors approved the term sheet on July 27, 2026, partnering with M/s. SIXP Realty Private Limited as the landowner and M/s. Bharathi & Associates Asset Building Private Limited as the marketing co-developer. The project, located at Poonamalee on the Outer Ring Road, aims to leverage the growing demand for specialized elderly housing while diversifying the company’s real estate portfolio beyond traditional commercial and industrial assets.

Project Structure and Scale

The development will take place on approximately 4.00 acres of land provided by the landowner. The project is planned to be executed in phases, with an indicative Floor Space Index (FSI) of 3.25. This allows for an estimated permissible built-up area of approximately 5,66,280 sq. ft., subject to statutory approvals. The term sheet is legally binding and enforceable upon all parties, with execution scheduled on or after July 27, 2026.

Parameter:	Details
Land Area:	Approximately 4.00 acres
Location:	Poonamalee, Outer Ring Road (ORR), Chennai
Indicative FSI / FAR:	3.25
Permissible Built-up Area:	Approximately 5,66,280 sq. ft.

Roles and Commercial Terms

W.S. Industries will act as the developer, responsible for end-to-end project execution and arranging necessary working capital facilities. In return, the company is entitled to a fixed return equivalent to 7.5% of the topline actually realized from the project. M/s. Bharathi & Associates Asset Building Private Limited will handle branding, marketing, and sales, earning a fixed fee of 15% of the topline, inclusive of sales and marketing expenditures.

The landowner, M/s. SIXP Realty Private Limited, will provide the land as security or collateral for the working capital facilities required for the project. The company clarified that this transaction does not constitute a related-party transaction.

Financing and Security

To fund the development, W.S. Industries will apply for and arrange working capital facilities. These facilities are primarily secured against the project land owned by the landowner. Depending on lender requirements, additional security may include hypothecation or charges over current assets such as receivables, inventory, and book debts generated by the project. The company emphasized that it has not undertaken any obligation regarding the landowner’s assured return or any shortfall thereunder; any such guarantees will be detailed in the definitive joint venture agreement.

Strategic Implications

This move signals W.S. Industries’ strategic pivot toward niche residential segments with higher value addition. By entering the senior living space, the company targets a demographic with specific care needs, potentially offering better margin stability compared to standard residential developments. The partnership model reduces upfront capital intensity by utilizing the landowner’s asset as collateral, allowing the company to leverage its development expertise without bearing full land acquisition costs. The definitive tripartite agreement will outline further rights and obligations once conditions precedent are satisfied.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.07%	-0.50%	-3.62%	-20.94%	-28.04%	+1,024.86%

W.S. Industries (India) Limited has submitted an additional disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding the examination of trading transactions by M/s. Renaatus Procon Private Limited ("RPPL"). This follows the company's previous disclosures dated 29th and 30th April 2026 concerning the review of share purchases made during the Trading Window closure period.

Background and Methodology

The Board of Directors approved the Audited Financial Results for the quarter and financial year ended 31st March 2026 on 14th May 2026. Consequently, the Trading Window, which was closed pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015 ("PIT Regulations"), reopened. The company designated 18th May 2026, the first trading day following the reopening, as the benchmark date for computing notional gain. The Audit Committee had previously adopted a conservative methodology for this calculation.

Transaction Details

RPPL purchased 2,000 equity shares during the Trading Window closure period in April 2026. The transaction details are as follows:

Date of Transaction	No. of Shares	Purchase Value (Rs.)	Purchase Price per Share (Rs.)
08.04.2026	1,000	76,075	76.08
09.04.2026	1,000	74,850	74.85
Total	2,000	1,50,925

The weighted average purchase price (WAP) was calculated at Rs. 75.46 per share, derived by dividing the total purchase consideration of Rs. 1,50,925 by 2,000 shares.

Notional Gain Computation

The closing market prices on the benchmark date (18th May 2026) were Rs. 67.50 on the BSE and Rs. 66.92 on the NSE. Applying the formula: Notional Gain = (Closing Price on Benchmark Date - Weighted Average Purchase Price) × Total Quantity of Shares, the computation yielded a negative value under both exchanges.

Particulars	BSE	NSE
Total Quantity of Shares Purchased	2,000	2,000
Weighted Average Purchase Price (Rs.)	75.46	75.46
Closing Price on 18.05.2026 (Rs.)	67.50	66.92
Variance per Share (Rs.)	(7.96)	(8.54)
Computed Gain / (Loss) (Rs.)	(15,920)	(17,080)

Audit Committee Conclusion

As the computed figures reflected a negative value in both scenarios, the company confirmed that no notional gain arises and therefore no disgorgement amount is payable. This disclosure is without prejudice to the Audit Committee's earlier conclusion that no violation of Regulation 4(1) of the PIT Regulations was established and no instance of trading while in possession of Unpublished Price Sensitive Information (UPSI) was observed. The company stated that this disclosure is made in the interest of transparency, good governance, and regulatory prudence.