SPV Global Trading Limited has achieved a significant milestone in its strategic divestment plan with the board of directors approving a binding term sheet with Gravita India Limited for the sale of its majority stake in material subsidiary Rashtriya Metal Industries Limited. The board meeting held on February 9, 2026, formalized the transaction structure following earlier shareholder approval granted on February 6, 2026.

Transaction Structure and Buyer Details

The approved transaction involves the execution of a binding term sheet with Gravita India Limited for the sale of 22,79,410 equity shares representing a 54.90% stake in Rashtriya Metal Industries Limited. The transaction marks a strategic partnership with an established industry player.

Enhanced Valuation Achievement

The binding term sheet represents a significant improvement over the initially set minimum valuation framework. The final consideration of INR 310.17 crores exceeds the previously established minimum consideration of INR 302.02 crores, demonstrating successful value optimization in the buyer identification process.

Subsidiary's Strategic Importance

Rashtriya Metal Industries Limited represents a dominant portion of SPV Global Trading's consolidated operations. The subsidiary's contribution during the financial year ended March 31, 2025, underscores its material significance to the parent company's overall performance.

Regulatory Compliance and Timeline

The transaction structure ensures full compliance with regulatory requirements under SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The company confirmed that Gravita India Limited does not form part of the promoter, promoter group, or group companies, ensuring the transaction remains outside the ambit of related party transactions.

The company has successfully obtained prior shareholder approval through a special resolution passed at an extraordinary general meeting held on February 6, 2026, with public shareholders' votes in favor exceeding those against the resolution. The proposed transaction is expected to be completed on or before March 31, 2026, subject to due diligence adjustments and customary closing conditions.

Next Steps

The company will proceed with the execution of definitive transaction documents, including the Share Purchase Agreement. Further disclosures will be made upon execution of the binding term sheet and completion of the transaction documentation process, in adherence to SEBI circular requirements dated July 13, 2023.

SPV Global Trading Limited has scheduled an extraordinary general meeting (EGM) on February 6, 2026, to seek shareholder approval for the proposed sale of its entire 54.90% stake in material subsidiary Rashtriya Metal Industries Limited. The board had earlier approved the divestment during its meeting held on January 8, 2026, pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

EGM Schedule and Voting Details

The company has announced comprehensive details for the upcoming shareholder meeting and voting procedures:

The EGM will be held at 308-312, Meadows, Sir M.V. Road, Sahar Plaza Complex, J.B. Nagar, Andheri (E), Mumbai - 400059. Shareholders can participate through remote e-voting via NSDL platform or attend the meeting in person.

Transaction Structure and Valuation

The proposed transaction involves the complete disposal of SPV Global Trading's holding in Rashtriya Metal Industries Limited to prospective buyers other than promoters or group companies:

The final consideration will be determined through negotiations with prospective buyers but will not fall below the minimum per share value of ₹1,325.00. The transaction remains subject to due diligence adjustments, requisite approvals including shareholder consent, and fulfillment of relevant condition precedents.

Material Subsidiary's Financial Contribution

Rashtriya Metal Industries Limited represents a significant portion of SPV Global Trading's consolidated operations, contributing substantially to the parent company's financial performance:

Regulatory Compliance and Authorization

The board has authorized Managing Director Balkrishna Binani to handle all aspects of the proposed transaction, including negotiating agreements, executing legal documents, and engaging advisors as required. The company confirmed that the transaction will not constitute a related party transaction as prospective buyers will be persons other than promoters or group members.

In compliance with Section 180(1)(a) of the Companies Act, 2013 and Regulation 24(5) of SEBI Listing Regulations, the company requires special resolution approval from shareholders for disposing of shares in its material subsidiary. The company will make additional disclosures to stock exchanges as transaction terms are finalized or when definitive agreements are executed.