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.

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.

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.

AB Cotspin India Limited , a textile manufacturer with over 25 years of industry expertise, has executed a land purchase agreement as part of its ambitious ₹1,500 crore expansion plan. The company recently reported significant financial improvements in H1FY26 and continues to advance its strategic growth initiatives through systematic land acquisitions.

Latest Land Acquisition

AB Cotspin executed a land purchase agreement on December 18, 2025, as part of its Board-approved expansion strategy:

This acquisition follows the company's systematic approach to securing land for its expansion plans, with previous acquisitions in August and September 2025.

Comprehensive Expansion Strategy

The Board of Directors approved a comprehensive expansion plan in July 2025, authorizing investment of up to ₹1,500 crore in the cotton and textile sector. The expansion encompasses:

The expansion includes acquisition of land from government and other authorities, establishment of manufacturing plants, warehousing facilities, logistics units, and related infrastructure for spinning, ginning, yarn manufacturing, processing, and by-product utilization.

Previous Land Acquisitions

AB Cotspin has been systematically acquiring land for its expansion:

August 2025 Acquisition:

• Location: Village Jaitu, Faridkot, Punjab
• Area: 4 Kanal-17.15 Marla (combined parcels)
• Consideration: ₹13.50 lakh

September 2025 Transaction:

• Location: Village Bains, Ludhiana, Punjab
• Area: 3 acres (approximately)
• Total consideration: ₹18.00 crore
• Advance payment: ₹1.50 crore

Strong Financial Performance

AB Cotspin's H1FY26 results demonstrate strong operational efficiency supporting its expansion plans:

Despite revenue decline, the company achieved remarkable profitability improvements with net profit growing 97.37% and EBITDA margins expanding significantly.

Strategic Vision

Managing Director Deepak Garg previously stated that the expansion aligns with the Prime Minister's 'Five Fs' framework for the textile sector. The company expects to achieve turnover of around ₹350 crore and EBITDA of ₹40-45 crore for FY2025-26.

AB Cotspin's shares trade on the main boards of NSE and BSE since September 24, 2025, following successful migration from the SME platform. The systematic land acquisition approach demonstrates the company's commitment to executing its expansion strategy while maintaining regulatory compliance.