Sanghi Industries has sought shareholders’ approval for related party transactions with Adani Enterprises, Ambuja Cements, ACC, and other group companies.
In its voting recommendations released today by proxy advisory firm InGovern, wherein it has recommended shareholders to vote in favour of resolutions proposed by Sanghi Industries. In an industry requiring optimum capacity utilisation to ensure good margins, InGovern, in its report, has stated that the capacity of Sanghi Industries is grossly underutilised.
As such, the receipt of advance payment for confirmed bulk purchases from Ambuja Cements and ACC will translate into profits for Sanghi Industries. To ensure compliance, the company has also obtained a fairness opinion from Shailesh Haribhakti & Associates, a firm whose founder has knowledge and experience in the cement industry. InGovern has stated that it recommends shareholders to vote in favor as the approval sought by Sanghi Industries is for a defined period and for routine business transactions. Being two of India’s largest cement companies, the synergies with Ambuja and ACC will have a positive impact on the liquidity position of Sanghi Industries, it has claimed.
The company will be able to run the business operations in a much better manner, extending the benefits to other stakeholders. Similarly, RPTs with Adani Enterprises will ensure a consistent supply of superior quality solid fuels to Sanghi Industries.