Board approves authorising CMD to execute final slump sale agreement; redemption of 10,00,000 preference shares

Board approved authorising CMD M K Patodia to execute the final slump sale agreement and sale deed for the Nagpur Spinning Unit, sold to GTN Engineering (India) Ltd.

Mon 5 Oct 2026

Cash Consideration

Rs.72 Crores

Unit Turnover Contribution (Annual, as on 31.03.2026)

Rs.162 Crores

Preference Shares Redeemed

10,00,000 0.01% Redeemable Preference Shares of Rs. 100/- each

Aggregate Redemption Value

Rs. 10,00,00,000/-

Transaction Nature

Related party transaction; promoter/group has interest

GTN Industries Ltd informed the exchanges about the outcome of its board meeting held on 5th Oct, 2026, in which two matters were approved: authorising the Chairman & Managing Director to execute the final documents for a slump sale, and redemption of redeemable preference shares.

What the board approved

• Authorising Shri M K Patodia, Chairman & Managing Director, to execute the final slump sale agreement, sale deed and any other related documents.
• Redemption of 10,00,000 0.01% Non-Cumulative Redeemable Preference Shares of Rs. 100/- each, aggregating to Rs. 10,00,00,000/- (Rupees Ten Crores Only), out of free reserves.

The slump sale

• The Nagpur Spinning Unit of GTN Industries Ltd is being sold to GTN Engineering (India) Ltd.
• Financial size and turnover contribution of the sale undertaking: Rs.162 Crores (Rupees One hundred and sixty Two Crores Only) as on 31.03.2026, on an annual basis.
• Cash consideration: Rs.72 Crores (Rupees Seventy-Two Crores Only). Share exchange ratio is not applicable.
• The slump sale agreement is executed on 5th day of Oct, 2026, with effect from 01.10.2026, and is to be completed by the end of December 2026 in multiple tranches.
• The transaction falls within related party transactions, and the promoter/group/promoter group has an interest in the entities.
• There is no change in the shareholding pattern of the listed entity.

The stated rationale

The company says the objective behind the slump sale is to mitigate widening operational losses caused by subdued market demand and volatile cotton pricing. On expected impact, it says the sale will significantly reduce operating turnover while shoring up net worth and improving net profitability by eliminating recurring operating drag.

The preference share redemption

• Type of security: 0.01% Non-Cumulative Redeemable Preference Shares.
• Total number redeemed and aggregate value: 10,00,000 shares of Rs. 100/- each at par, aggregating to Rs. 10,00,00,000/-.
• Name of the security holder: GTN Engineering (India) Ltd, holding 10,00,000 shares.
• Listing status: unlisted. Manner of redemption: out of free reserves.

What stands out

• GTN Engineering (India) Ltd appears on both counts, as the buyer of the Nagpur Spinning Unit and as the holder of the preference shares being redeemed.
• The slump sale is disclosed as a related party transaction with promoter/group interest, while the listed entity's shareholding pattern is unchanged.
• The sale consideration is Rs.72 Crores against a turnover contribution of Rs.162 Crores for the unit being sold.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.