Systematix Corporate Services Limited, a renowned investment banking entity, has officially submitted the recommendations of its Independent Director's Committee (IDC) concerning the open offer for Kandagiri Spinning Mills Limited. The open offer, initiated by Akshayam Creations LLP (Acquirer) and Persons Acting in Concert (PACs), is aimed at acquiring up to 10,00,805 equity shares of Kandagiri Spinning Mills. These shares represent a 26% stake in the total voting share capital of the target company.

In line with the regulations under SEBI's (SAST) Regulations, 2011, the Independent Director’s Committee convened a meeting on April 29, 2025, to review and provide their recommendations regarding the open offer. The recommendation, which was published on April 30, 2025, has been made available to the public through various newspapers, including The Financial Express (English), Jansatta (Hindi), Mumbai Lakshdeep (Marathi), Madrasmani (Tamil – Chennai Edition), and Makkal Kural (Tamil – Coimbatore Edition).

The open offer is being made at a price of Rs. 25 per equity share, a figure that has been set in compliance with the SEBI regulations under Regulation 3(1) & 4 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations. The recommendation aims to provide shareholders with adequate information to make an informed decision regarding the offer.

The target company, Kandagiri Spinning Mills Limited, is a key player in the textile industry, and this acquisition is expected to have significant implications for both the acquirer and the shareholders of the target company. Akshayam Creations LLP, alongside its PACs, is proceeding with this offer to acquire the necessary stake to gain control over the company.

As part of the transparency and compliance process, the recommendations of the IDC have been widely disseminated to the public in the aforementioned newspapers. This is in accordance with Regulation 26(7) of SEBI (SAST) Regulations, which mandates that such recommendations be published in a newspaper where the Detailed Public Statement (DPS) was earlier published.

With this step, Systematix Corporate Services ensures full adherence to the regulations governing public offers and the protection of shareholders’ interests. The shareholders of Kandagiri Spinning Mills are now expected to review the recommendations before making their decisions on the open offer.

The committee's recommendations play a pivotal role in providing shareholders with an objective perspective, ensuring that they can weigh the benefits and drawbacks of the offer in an informed manner. As part of the process, the open offer will proceed with full compliance with SEBI regulations, making the entire process transparent and efficient for all stakeholders involved.

The offer, which will proceed with the scheduled timeline, has been structured to comply with all legal requirements, providing a smooth and regulatory-compliant process for shareholders of Kandagiri Spinning Mills.

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