News Orders & Deals Kandagiri Spinning Mills Board Approves Sale of Associate Company SPMM Health Care ServicesKandagiri Spinning Mills Board Approves Sale of Associate Company SPMM Health Care Services
Kandagiri Spinning Mills Ltd. board has approved the complete sale of its 20,00,000 equity shares in associate company SPMM Health Care Services Private Limited for Rs 2,28,80,000. The shares are priced at Rs 11.44 each based on valuation and will be sold to three individual buyers from Salem. The associate company contributed Rs 8.63 lakhs profit with attributable net worth of Rs 216.44 lakhs in the last financial year. The transaction is expected to complete before March 31, 2026.
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Kandagiri Spinning Mills Ltd. has received board approval to divest its entire stake in associate company SPMM Health Care Services Private Limited. The decision was made during a board meeting held on February 12, 2026, following recommendations from the audit committee.
Transaction Details
The divestment involves the complete sale of Kandagiri Spinning Mills' holding in SPMM Health Care Services, comprising 20,00,000 equity shares. The shares have been priced at Rs 11.44 per share based on a professional valuation report, resulting in total sale consideration of Rs 2,28,80,000.
| Transaction Parameter: | Details |
|---|---|
| Total Shares: | 20,00,000 equity shares |
| Price per Share: | Rs 11.44 |
| Total Consideration: | Rs 2,28,80,000 |
| Expected Completion: | Before March 31, 2026 |
Buyer Distribution
The shares will be distributed among three individual buyers, all based in Salem:
- Mr. S. Devarajan, Salem: 6,70,000 shares
- Mr. S. Jegarajan, Salem: 6,65,000 shares
- Mr. S. Dinakaran, Salem: 6,65,000 shares
The company has confirmed that none of the buyers belong to the promoter, promoter group, or group companies, and the transaction does not constitute a related party transaction.
Associate Company Performance
SPMM Health Care Services contributed Rs 8.63 lakhs in profit to Kandagiri Spinning Mills during the last financial year. The net worth of the associate company attributable to the shareholding stood at Rs 216.44 lakhs as per the last financial year's records.
| Financial Metric: | Amount |
|---|---|
| Profit Contribution: | Rs 8.63 lakhs |
| Net Worth (Attributable): | Rs 216.44 lakhs |
Regulatory Compliance
The disclosure has been made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the SEBI Master Circular dated November 11, 2024. The company noted that no formal sale agreement has been executed yet, with the board approval serving as the initial step in the divestment process. The transaction is expected to be completed outside any scheme of arrangement and does not require compliance with Regulation 37A of LODR Regulations.
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