News Corporate Actions AB Cotspin India Limited Announces Postal Ballot for Material Related Party Transaction ApprovalAB Cotspin India Limited Announces Postal Ballot for Material Related Party Transaction Approval
AB Cotspin India Limited has issued a postal ballot notice seeking shareholder approval for material related party transactions worth Rs. 85.00 crore with AB Cotton Textiles Private Limited. The transactions include sale and purchase of goods and services, with remote e-voting scheduled from January 31 to March 01, 2026. The proposal requires approval as it represents 28.25% of the company's consolidated turnover, exceeding the 10% materiality threshold under SEBI regulations.
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AB Cotspin India Limited has announced a postal ballot notice dated January 27, 2026, seeking member approval for material related party transactions under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company requires shareholder consent for transactions with AB Cotton Textiles Private Limited, a related party where company directors Mr. Deepak Garg and Mr. Manohar Lal serve as director & member and director respectively.
Transaction Details and Structure
The proposed related party transactions encompass multiple business activities with an aggregate value ceiling of Rs. 85,00,00,000 (Rupees Eighty-Five Crore only) for a period of one year from the date of member approval. The transactions are structured to be conducted at arm's length and in the ordinary course of business.
| Transaction Type: | Amount (Rs. Crore) |
|---|---|
| Sale of Goods and Services: | 63.00 |
| Purchase of Goods and Services: | 20.00 |
| Rendering of Services: | 1.00 |
| Availing of Services: | 1.00 |
| Total Transaction Value: | 85.00 |
The sale of goods primarily involves residual waste generated during cotton ginning and spinning processes, which AB Cotton Textiles Private Limited can utilize as raw material. Purchase transactions include hard waste from the related party's manufacturing process for recycled yarn production. Service transactions cover transportation services and job work arrangements between the entities.
E-Voting Process and Timeline
The company has engaged Central Depository Services (India) Limited (CDSL) to facilitate remote e-voting for all eligible members. The voting process follows a structured timeline to ensure proper member participation.
| Process Parameter: | Details |
|---|---|
| Cut-off Date: | Friday, January 23, 2026 |
| E-voting Commencement: | Saturday, January 31, 2026 at 9:00 A.M. |
| E-voting Conclusion: | Sunday, March 01, 2026 at 5:00 P.M. |
| Scrutinizer: | Mr. Deepak Gupta (COP No. 4629, Membership No. F5339) |
| Service Provider: | Central Depository Services (India) Limited |
Members whose names appear in the Register of Members or Register of Beneficial Owners as on the cut-off date and have registered email addresses will receive the postal ballot notice electronically. The notice is also available on the company's website at www.abcotspin.co.in and CDSL's website at www.evotingindia.com .
Regulatory Compliance and Rationale
The transactions require member approval as they constitute material related party transactions under Regulation 23 of SEBI Listing Regulations. For companies with consolidated turnover up to Rs. 20,000 crore, transactions exceeding 10% of annual consolidated turnover are considered material. The proposed transactions represent 28.25% of the company's consolidated turnover for the immediately preceding financial year.
The Board of Directors, based on Audit Committee recommendations in their meeting held on January 27, 2026, has approved the proposal. The transactions are designed to optimize resource utilization, improve operational efficiency, and ensure reliable buyer-supplier relationships between the related entities. Both companies operate in complementary yarn manufacturing segments, enabling efficient resource sharing and capacity utilization.
Previous Transaction History
The company has maintained ongoing business relationships with AB Cotton Textiles Private Limited. During FY 2024-25, total transactions amounted to Rs. 32,35,64,498, including sale of goods (Rs. 30,32,43,911), purchase of goods (Rs. 1,89,92,855), rendering services (Rs. 10,60,825), and availing services (Rs. 2,66,907). In the current financial year up to the quarter preceding this approval, transactions totaled Rs. 29,99,95,464.
Key Stakeholder Information
Mr. Rahul Kapasiya, Company Secretary & Compliance Officer (Membership No. A70811), has signed the postal ballot notice. The scrutinizer will submit results within two working days from the last e-voting date, with results being communicated to stock exchanges and published on relevant websites. Related parties as defined under SEBI Listing Regulations will not be eligible to vote on this resolution, ensuring independent member decision-making.
