News Orders & Deals Kandagiri Spinning Mills Completes Sale of Associate Company Under Regulation 30Kandagiri Spinning Mills Completes Sale of Associate Company Under Regulation 30
Kandagiri Spinning Mills Ltd. successfully divested its complete shareholding in associate company SPMM Health Care Services Private Limited through physical share transfer on February 26, 2026. The transaction involved 20,00,000 equity shares sold at Rs 11.44 per share for total consideration of Rs 2,28,80,000 to three Salem-based individual buyers, marking the company's complete exit from healthcare services sector.
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Kandagiri Spinning Mills Ltd. has successfully completed the divestment of its entire shareholding in associate company SPMM Health Care Services Private Limited, marking a significant corporate restructuring move. The transaction was completed on February 26, 2026, following board approval granted on February 12, 2026.
Transaction Details
The sale involved the complete divestment of Kandagiri Spinning Mills' stake in its associate company through a physical share transfer mechanism. The company disposed of all its holdings at a predetermined price based on professional valuation.
| Transaction Parameter: | Details |
|---|---|
| Total Shares Sold: | 20,00,000 equity shares |
| Sale Price per Share: | Rs 11.44 |
| Total Consideration: | Rs 2,28,80,000 |
| Transaction Date: | February 26, 2026 |
| Transfer Method: | Physical Share Transfer |
Buyer Distribution
The equity shares were 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 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.
Financial Impact
The associate company had contributed Rs 8.63 lakhs in profit during the last financial year. The net worth of the associate company attributable to Kandagiri Spinning Mills' shareholding stood at Rs 216.44 lakhs as per the last financial year.
| Financial Metric: | Amount |
|---|---|
| Profit Contribution (Last FY): | Rs 8.63 lakhs |
| Attributable Net Worth (Last FY): | Rs 216.44 lakhs |
| Sale Consideration Received: | Rs 2,28,80,000 |
Regulatory Compliance
The transaction was conducted in full compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made pursuant to SEBI Master Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The sale price of Rs 11.44 per share was determined based on a professional valuation report, ensuring adherence to regulatory requirements for such corporate transactions.
The company confirmed that the sale does not fall within any scheme of arrangement and is not classified as a slump sale, making additional regulatory disclosures under Regulation 37A of LODR Regulations not applicable.
Corporate Structure Impact
With the completion of this divestment, SPMM Health Care Services Private Limited has ceased to be an associate company of Kandagiri Spinning Mills Ltd. with effect from February 26, 2026. This strategic move represents a complete exit from the healthcare services sector for the textile manufacturing company, allowing it to focus on its core spinning and textile operations.
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