Binny Mills has made a significant move in its latest board meeting, approving the mortgaging of a substantial land parcel to facilitate a large loan for SPR Construction. The decision marks a notable development for the company, potentially impacting its asset utilization strategy.

Key Highlights

• Land Mortgage Approval: Binny Mills' board has given the green light to mortgage 28.23 acres of land.
• Loan Facilitation: The mortgage will enable a ₹750.00 crore loan for SPR Construction.
• Company's Role: Binny Mills clarified that it will not act as a guarantor or borrower in this transaction.
• Loan Responsibility: SPR Construction will bear sole responsibility for the loan.

Transaction Details

The board's decision to approve the mortgaging of 28.23 acres of land is a strategic move that allows SPR Construction to secure a substantial loan of ₹750.00 crore. This arrangement demonstrates Binny Mills' willingness to leverage its land assets to facilitate significant financial transactions for other entities.

Binny Mills' Position

It's important to note that Binny Mills has explicitly stated its position in this transaction:

1. The company will not serve as a guarantor for the loan.
2. Binny Mills will not assume the role of a borrower in this arrangement.
3. The entire responsibility for the loan rests with SPR Construction.

This clarification from Binny Mills underscores the company's intent to limit its financial exposure while still utilizing its land assets productively.

Implications

While the mortgage approval allows Binny Mills to potentially generate value from its land holdings, it also ties up a significant portion of its real estate assets. Shareholders and market analysts will likely be keen to understand the terms of this arrangement and any potential benefits that may accrue to Binny Mills as a result of this decision.

The move could be seen as part of Binny Mills' broader strategy for asset management and value creation. However, the long-term implications of this decision on the company's financial position and future land development opportunities remain to be seen.

As this transaction unfolds, stakeholders will be watching closely to assess its impact on Binny Mills' overall business strategy and financial health.

Binny Mills Limited , a textile trading and warehousing company, has announced the completion of a significant share buyback, reported its financial results, and received approval for promoter reclassification.

Promoter Reclassification

BSE Limited approved Binny Mills Ltd's application to reclassify promoter shareholders to public shareholders under Regulation 31A of SEBI Listing Regulations. The company applied on May 09, and received approval on August 08. Six entities were reclassified as public shareholders, all holding zero shares (0.00% shareholding):

• Sheetala Credit and Holdings Private Limited
• Calcom Credit and Holdings Private Limited
• Rajat Chakra Credit and Holdings Private Limited
• Satluj Credit and Holdings Private Limited
• Twentieth Century-Apco Leasing Private Limited
• Rajalakshmi N

The overall shareholding structure remains unchanged, with promoter holding at 17,81,806 shares (68.97%) and public holding at 8,01,464 shares (31.03%).

However, BSE issued a warning letter to Binny Mills for delayed disclosure compliance. While the company submitted its application on May 09, it only disclosed this material event on July 05, violating the 24-hour disclosure requirement under Regulation 31A(8)(c). BSE advised the company to exercise due caution and implement corrective measures to prevent future lapses.

Share Buyback

The company has successfully completed a buyback of 6,05,204 equity shares from its promoters and promoter group, as approved by the board of directors. This buyback, valued at Rs. 34.00 crores, was executed on September 30, in accordance with the National Company Law Tribunal (NCLT) order dated September 13. The buyback has resulted in a reduction of the company's share capital.

Financial Performance

Binny Mills Limited reported:

• Revenue from operations: Rs. 632.18 lakhs, down from Rs. 697.42 lakhs in the previous year
• Net loss: Rs. 1,270.55 lakhs, compared to a net loss of Rs. 1,450.12 lakhs in the previous year

The company's financial performance was impacted by changes in sales across its business segments:

• Warehousing division: Rental income increased by 3.90% to Rs. 289.92 lakhs
• Showrooms division: Sales increased by 12.14% to Rs. 146.11 lakhs
• Textiles division: Sales decreased by 45.46% to Rs. 198.71 lakhs

Segment-wise Performance

Board Changes

The company has made several changes to its board of directors during the year, including:

• Appointment of new independent directors: Shri M. Padmanabhan, Shri Viyash Perumal, Shri Richard Henry, and Shri Ashwath Naroth
• Appointment of Shri Thillainayagam Yeswanth as a Non-Executive Non-Independent Director
• Resignation of Shri Natarajan Prasanna as Executive Director

Future Outlook

Binny Mills Limited plans to improve its sales performance in the Textile Division by focusing on wholesale customers while retaining existing retail customers. The company also aims to procure bulk orders for its Textile division to improve sales and profit. Additionally, there are plans to develop and optimize the use of warehouse space to attract clients and maximize income.

The company continues to face challenges in the competitive retail textile business but remains confident in mitigating risks through its established reputation and brand image.

Binny Mills Limited's shares are listed on the BSE Limited under the scrip code 535620. The company's stock trading, which was suspended on March 5 due to non-appointment of Independent Directors, has since been revoked as of July 9.