Rajapalayam Mills Limited has successfully completed the acquisition of 5,00,000 shares of Ramco Industries Limited (RIL) for Rs 15.45 crore through a block deal mechanism on September 4, 2025. This strategic move, which was part of a previously approved plan, marks a significant step in strengthening Rajapalayam Mills' investment in its associate company.

Transaction Details

The acquisition was executed as an inter-se transfer among the Promoter Group, with the shares being purchased from Smt. Alagaraja Ramalakshmi, a member of the Promoter Group of both Rajapalayam Mills and Ramco Industries. The transaction was carried out at the prevailing market price, adhering to arm's length principles.

Board Approval and Investment Limit

On September 3, 2025, the Board of Directors of Rajapalayam Mills unanimously approved this share acquisition. The board set an upper limit of Rs 15.80 crore for the investment, which could be executed in one or more tranches. The completed transaction of Rs 15.45 crore falls within this approved limit.

Strategic Investment and Existing Stake

Rajapalayam Mills' decision to increase its stake in Ramco Industries is backed by strong financial rationale. The company's existing investment of Rs 89.94 crore in RIL has shown significant appreciation, reaching a market value of Rs 363.47 crore. This new acquisition further solidifies Rajapalayam Mills' position in RIL.

About Ramco Industries Limited

Ramco Industries Limited, a member of the Ramco Group of Companies, is engaged in the manufacturing of Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs). The company also generates power through windmills. RIL has demonstrated consistent financial performance over the past three years:

Promoter Group Interests

The acquisition highlights the close ties between the two companies:

• Shri P.R. Venketrama Raja, Chairman and Promoter of Rajapalayam Mills, also serves as Chairman and Promoter of Ramco Industries, holding a 10.71% stake in RIL.
• Smt. P.V. Nirmala Raju, Managing Director of Rajapalayam Mills, belongs to the promoter group of both companies and holds a 0.46% stake in RIL.
• Shri P.V. Abinav Ramasubramaniam Raja, Director and Promoter of Rajapalayam Mills, is the Managing Director and Promoter of Ramco Industries, with a 0.05% stake in RIL.

Impact on Shareholding

Prior to this transaction, the Promoters and Promoter Group held 54.81% of the paid-up capital of Ramco Industries. The company has stated that there will be no change in the management of RIL as a result of this acquisition.

This strategic investment by Rajapalayam Mills in Ramco Industries underscores the company's confidence in RIL's business prospects and its commitment to strengthening its position within the Ramco Group of Companies.

Rajapalayam Mills Limited, a prominent player in the textile industry, has announced a strategic move to strengthen its position in the building materials sector. The company's board of directors has approved an additional investment of up to ₹15.8 crore in its associate company, Ramco Industries Limited (RIL), through a promoter group inter-se transfer arrangement.

Investment Details

The investment will be made by purchasing shares of Ramco Industries from Smt. Alagaraja Ramalakshmi, a member of the promoter group of both Rajapalayam Mills and RIL. This transaction is set to be executed at the prevailing market price, ensuring an arm's length approach to the related party transaction.

Strategic Rationale

Rajapalayam Mills' decision to increase its stake in Ramco Industries appears to be driven by the strong performance of its existing investment. The company disclosed that its current investment of ₹89.94 crore in RIL has appreciated significantly to ₹363.47 crore, based on current market value.

About Ramco Industries

Ramco Industries Limited, a member of the Ramco Group of Companies, specializes in manufacturing Fiber Cement (FC) sheets and Calcium Silicate Boards (CSBs). The company also engages in power generation through windmills. RIL has demonstrated steady financial performance over the past three years:

Transaction Timeline and Structure

The board has stipulated that the acquisition should be completed within six months from the date of approval. The investment will be made in cash, either in a single tranche or multiple tranches, up to the approved limit of ₹15.8 crore.

Implications for Ownership

Post-transaction, there will be no change in the management control of Ramco Industries. The promoters and promoter group currently hold 54.81% of the paid-up capital of RIL, and this ownership structure is expected to remain stable.

Regulatory Compliance

The investment has been approved in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. No additional governmental or regulatory approvals are required for this transaction.

This strategic investment by Rajapalayam Mills in Ramco Industries underscores the company's confidence in the building materials sector and its commitment to strengthening its portfolio within the Ramco Group of Companies.