RSWM Limited , a prominent player in the textile industry, has announced a significant development regarding its subsidiary, Bhilwara Energy Limited (BEL). Singularity Growth Opportunities Fund II has exercised its additional investment option in BEL, marking a substantial expansion of its stake in the energy company.

Investment Details

The board of directors of Bhilwara Energy Limited has approved the allotment of 1,75,95,979 partly paid-up equity shares at INR 142.08 per share. This move comes as part of an additional investment of approximately INR 250 crore by Singularity and its affiliates in BEL.

Financial Implications

• Initial Payment: BEL has received INR 25 crore as an initial payment, representing 10% of the additional subscription amount.
• Share Price: The shares were allotted at INR 142.08 per share.
• Total Investment: This additional investment follows an earlier infusion of about INR 250 crore by Singularity and its affiliates in BEL.

Ownership Structure

Following this additional allotment, the investors' holdings in Bhilwara Energy Limited will see a significant increase:

This substantial increase in ownership underscores the growing confidence of Singularity Growth Opportunities Fund II in BEL's potential and future prospects.

Terms of Agreement

According to the Share Subscription and Shareholders' Agreement (SSSHA), the remaining 90% of the additional subscription amount will be paid when called upon by BEL. This flexible payment structure allows for strategic capital deployment aligned with BEL's growth plans.

Corporate Disclosure

RSWM Limited, in compliance with regulatory requirements, has disclosed this development under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company considers this a material development, highlighting its significance for shareholders and the market.

Conclusion

This additional investment by Singularity Growth Opportunities Fund II in Bhilwara Energy Limited marks a notable milestone for RSWM Limited. It not only infuses substantial capital into BEL but also signals strong investor confidence in the company's growth trajectory and operational capabilities in the energy sector.

Investors and market watchers will likely keep a close eye on how this increased investment translates into strategic initiatives and growth for Bhilwara Energy Limited in the coming months.

RSWM Limited , a prominent textile manufacturer, has announced the cancellation of its ambitious ₹740.00 crore greenfield project in Kathua, Jammu. The project, which was intended for the production of recycled PET chips and filament yarn, has been abandoned due to economic and geopolitical challenges.

Project Abandonment

The company's Board of Directors made the decision to drop the Kathua project, citing non-viability in the current economic and geopolitical climate. RSWM had initially announced the approval of this significant capital expenditure on August 9, aiming to establish a new manufacturing facility for recycled materials.

Land Surrender

As a consequence of this decision, RSWM will surrender the land that was allotted for the proposed manufacturing facility. This move indicates a significant shift in the company's expansion strategy and highlights the impact of broader economic factors on corporate investment plans.

Reasons for Withdrawal

The company stated that it does not foresee obtaining the necessary incentives, subsidies, and other relevant approvals in the near future. This lack of anticipated support, combined with the challenging economic environment, has rendered the project unfeasible from RSWM's perspective.

Corporate Governance

The decision to abandon the project was approved by RSWM's Board of Directors through a resolution by circulation, which was received at 5:01 PM on September 8. This information was promptly disclosed to the stock exchanges in compliance with regulatory requirements, demonstrating the company's commitment to transparency and corporate governance.

Market Implications

The cancellation of such a substantial project may have implications for RSWM's growth strategy and could impact investor sentiment. It also reflects the broader challenges faced by the manufacturing sector in India, particularly in the context of global economic uncertainties.

Conclusion

RSWM's decision to withdraw from the Kathua project underscores the cautious approach companies are adopting in the face of economic headwinds. As businesses navigate through uncertain times, strategic reassessments and project viability reviews are becoming increasingly common in the corporate landscape.