Elpro International Limited has announced plans to seek shareholder approval for related party transactions totaling Rs 355 crores through a postal ballot. The company aims to provide interest-bearing inter-corporate deposits (ICDs), loans, or guarantees to four related entities over a one-year period.

Proposed Transactions

The company has outlined the following proposed transactions:

Key Terms and Conditions

• Interest Rate: 11% per annum for loans and ICDs
• Commission: 0.50% for guarantees
• Tenure: One year
• Security: Unsecured

Voting Process

• E-voting Period: October 19 to November 17, 2025
• Cut-off Date: October 10, 2025 (for determining eligible shareholders)
• Scrutinizer: Mrs. Jayshree A. Lalpuria appointed to oversee the postal ballot process

Regulatory Compliance

The proposed transactions exceed 10% of Elpro International's annual consolidated turnover, necessitating shareholder approval under SEBI regulations. The company has stated that these transactions are aimed at deploying funds efficiently and will be conducted at arm's length.

Management Commentary

While specific management quotes were not provided, the company's rationale for these transactions appears to be focused on efficient fund deployment and supporting the business activities of related entities.

Investor Considerations

Shareholders should note that these transactions represent a significant portion of the company's financial activities. The interest rates and commission structures are stated to be in line with prevailing market standards, which may provide some assurance of fair dealing.

As Elpro International moves forward with this proposal, investors will need to carefully evaluate the potential benefits and risks associated with these related party transactions before casting their votes.

Elpro International Limited has significantly increased its stake in Ganesha Ecosphere Limited, a leading manufacturer of recycled polyester (rPET) fiber in India. The company acquired an additional 53,566 equity shares for INR 6.53 crores in a cash transaction, as disclosed in a recent regulatory filing.

Investment Details

The acquisition has nearly doubled Elpro's shareholding in Ganesha Ecosphere:

This strategic move, aimed at investment purposes, does not involve any related party transactions.

About Ganesha Ecosphere

Ganesha Ecosphere, incorporated in 1987, has established itself as a pioneer in the manufacture of rPET fiber and yarn from pre- and post-consumer PET bottle scrap. The company operates in the textile products industry, specifically in the rPET fiber manufacturing sector.

Financial Performance

Ganesha Ecosphere has shown robust financial growth in recent years:

The company's revenue from operations has seen a significant increase of about 30.5% in FY 2024-25 compared to the previous year.

Market Implications

This acquisition by Elpro International could be seen as a vote of confidence in Ganesha Ecosphere's business model and growth prospects. As the demand for recycled materials continues to rise globally, companies like Ganesha Ecosphere, which specialize in rPET fiber manufacturing, are well-positioned to benefit from this trend.

The investment also aligns with the growing focus on sustainable and environmentally friendly products in the textile industry. Ganesha Ecosphere's specialization in recycling PET bottle scrap into usable fiber puts it at the forefront of this eco-friendly movement in the textile sector.

For investors and market watchers, this transaction highlights the potential value in the recycled materials sector and may signal increased interest in companies operating in this space.