N R Agarwal Industries Limited has successfully completed the release of pledged promoter shares by SBI CAP Trustee Company Limited. The pledge release, executed on December 16, 2025, covers 1,25,16,998 equity shares representing 73.55% of the company's total share capital, with the formal disclosure made on December 18, 2025.

Complete Pledge Release Details

SBI CAP Trustee Company Limited has released its entire pledge holding in the company, marking the end of an encumbrance that was originally created on March 7, 2022. The released shares were pledged against a loan facility of ₹426.80 crores for the benefit of the listed company against term loan requirements.

Promoter-wise Pledge Release Breakdown

The pledge release affects three key promoters who had encumbered their entire holdings. All promoter shares previously pledged have now been completely released from the SBI CAP arrangement.

Current Encumbrance Structure

While the SBI CAP pledge has been completely released, the company maintains a separate non-disposal undertaking with Axis Bank Limited created on November 19, 2025. This arrangement involves the same shareholding but serves different financing requirements.

Regulatory Compliance and Disclosure

The pledge release has been disclosed under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was made to both BSE Limited and National Stock Exchange of India Limited on December 18, 2025, with a revised disclosure submitted on December 22, 2025, addressing discrepancy concerns raised by the stock exchanges.

The company's total promoter shareholding stands at 1,25,17,966 shares, representing 73.55% of total share capital. The successful completion of this pledge release removes a significant encumbrance from promoter holdings while maintaining adequate financing arrangements through the existing non-disposal undertaking with Axis Bank for corporate funding needs.

N R Agarwal Industries Ltd , a prominent player in the paper industry, has announced significant strategic moves that are set to reshape its operations and capacity. The company has revealed plans for a major expansion with a new Multilayer Board plant while simultaneously closing an underperforming unit. In the latest development, the company has commenced land acquisition for its ambitious Unit VI project.

Land Acquisition Progress for Unit VI

N R Agarwal Industries has taken a major step forward in its expansion plans by commencing the process of acquiring land at Dahej, Gujarat for its new Multilayer Board plant (Unit VI). The company plans to acquire approximately 145 acres of land for this project, with the acquisition being undertaken in multiple tranches.

The first tranche of sale deeds has been executed on December 19, 2025, marking a significant milestone in the project's development timeline.

Expansion Plans: New Multilayer Board Plant

N R Agarwal Industries has unveiled plans to establish a new Multilayer Board plant, designated as Unit VI, with an impressive capacity of 1,000 tonnes per day (TPD). This ambitious project comes with an estimated investment of Rs 1,200.00 crores and is expected to be completed within a four-year timeframe.

As part of this expansion, the company has approved the purchase of a 2013 make 4.3 meter deckle board paper machine with a capacity of 1,020 TPD from China. The machinery, along with pulp stock preparation equipment, will be dismantled and transported to India.

Closure of Unit IV

In a parallel development, N R Agarwal Industries has announced the permanent closure of its Unit IV, a Duplex Board Plant, effective July 31, 2025. The decision comes after the unit had ceased operations on July 1, 2024, due to non-viable operations.

Current Operational Capacity

N R Agarwal Industries' existing operational capacity stands at 4,44,000 MT per annum. The company utilized 3,84,880 MT of this capacity, indicating a high utilization rate of approximately 86.70%.

Market Implications

The commencement of land acquisition at Dahej, Gujarat represents a concrete step towards realizing the company's expansion vision. The significant capacity addition of 1,000 TPD through the new Multilayer Board plant is poised to strengthen the company's market position in the paper industry. While the closure of Unit IV may have a minor impact on revenue in the short term, the strategic decision to shut down non-viable operations is likely aimed at improving overall operational efficiency and profitability.