The Board of Directors of Ramco Cements Limited, in its meeting held on October 29, 2024, approved the disinvestment of up to 1,40,91,500 equity shares of Ramco Industries Limited (RIL). The shares will be sold to Rajapalayam Mills Limited (RML) and Ramco Management Private Limited (RMPL), both of which are part of the promoter group of RIL.
This inter-se promoter transfer is expected to complete within 30 days, with the consideration for the shares dependent on the prevailing market price on the date of the transaction. Proceeds from the sale will be used to reduce the company’s borrowings. Despite the share transfer, there will be no change in the management or control of Ramco Industries.
Ramco Cements reported a dividend income of ₹1.05 crore from its investment in RIL in the last financial year, representing 0.26% of the company’s total income. The transaction, being a related-party deal, will be conducted on an arm’s length basis.
