Kandagiri Spinning Mills Limited (KSML) was incorporated on 5th May, 1976 under the Companies Act, 1956 under the name of “The Ammapet Sizing Mills Private Limited”. Later on the name was changed to “Kandagiri Spinning Mills Private Limited” pursuant to special resolutions passed on 17th April, 1978. The Change of name was approved by the Central Government under section 21 of the Act and a fresh certificate of incorporation dated 15th July, 1978 was obtained. The word “Private” was deleted under the provisions of section 43A (2) of the Act with effect from 1st January, 1989 and the Company has become full-fledged Public Company with effect from 21st November, 1992. The company made public issue during the year 1995 and listed its equity shares in the Bombay Stock Exchange. The Authorised Share capital of the Company is Rs. 5 crores (50,00,000 equity shares of Rs. 10 each) and issued 38,65,650 equity shares of Rs. 10 each at a premium of Rs. 40/- each. 38,49,250 equity shares of Rs. 10/- each with premium of Rs 40/- each were subscribed and fully paid-up. These shares are listed and traded in the Bombay stock exchange. The Company has 16400 forfeited equity shares amounting to Rs. 82000.
KSML was promoted by (Late) Sri. K. R. Manicka Mudaliar, (Late) Sri. S. P. Sambandam, (Late) Sri. L. Manicka Mudaliar and (Late) Sri. A. Ganesa Mudaliar who owned rich experience of about four decades in yarn market. It was then managed by Sri. R. Selvarajan Managing Director and his son Sri S. Vijay Shankar, Chief Financial Officer from the year 2002. Sri R. Selvarajan is the son of Late Sri S.P. Ratnam and nephew of Late Sri. S. P. Sambandam. The other Non-Executive Board of Directors from the founder Director’s family were Sri S. Devarajan, Son of Late Sri S. P. Sambandam, Late Sri. M. Rajamani, son of Late Sri K.R. Manicka Mudaliar and Sri S. Sivakumar, grandson of Late Sri. K. R. Manicka Mudaliar and son of Late Sri M. Sigamani.
The Company commenced production in 1979 with an installed capacity of 3260 spindles for manufacture of cotton yarn. Over the years, Company established as a major Industrial concern with three Spinning Units and indulged in yarn manufacturing business for over four decades. Company also installed Wind Energy Generators in Kanyakumari, Tirunelveli Districts and the power generated from the Wind Energy Converters, were captively consumed by the three Spinning Units.
Because of challenges faced in the textile industry by uncontrolled and fluctuating cotton prices and disparity in cotton and yarn prices in the following years, the performance of the Company was affected and as a Strategic move, after obtaining requisite approvals Company sold its Wind Energy Generators and Spinning Units (Unit-II &III and Plant & machinery of Unit-1) in the years 2017 & 2020. Company carried out yarn trading Business in Unit-I premises (situated at Udayapatti, Salem- 636140, the Registered Office of the Company) from the year 2020. With requisite approvals, for a span of three years, the Company also leased part of land and building of Unit-I premises to M/s Sambandam Spinning Mills Limited during the years from June 2020 to October 2023.
On 03.02.2025, Share Purchase Agreement (SPA) was executed between Promoters of the Company and Akshayam Creations LLP (“Acquirer”) [PACs – Partners of Akshayam Creations LLP viz., Mr. Sigamani Sivakumar, Mr. Manoj Kumar Maurya, Mr. Adinarayana Sripathy Kumar and Mr. Balasubramanian Prabhakaran] for acquisition of entire 24,99,509 (64.93%) equity shares of existing Promoters in the Company’s shareholding at a price of Rs 16/- per equity share and also takeover of the Company, which triggered Open offer under regulation 3(1) and 4 of Securities Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
After obtaining requisite approvals from SEBI on 17th April, 2025, Acquirer made Open offer for acquisition of 10,00,805 (26%) equity shares from public shareholders of the Company at a price of Rs 25/- per equity share during the period from 7th May, 2025 to 21st May, 2025. The Open Offer was completed on 26th May, 2025 by acquisition of 1000 (0.03%) equity shares of the Company by the Acquirer from the Public shareholders.
As per the terms of SPA, the promoters of the Company had transferred their shares in different tranches to Acquirer Akshayam Creations LLP and also, except the Non-Executive Director of the Company Sri S. Sivakumar, who is also partner of Acquirer Akshayam Creations LLP, the other existing Promoter Directors/KMPs of the Company viz., Managing Director Sri R. Selvarajan, Non- Executive Directors Sri S. Devarajan and Dr A. Sarayu and Chief Financial Officer Sri S. Vijay Shankar and also Chairman and Non-Executive Independent Director CA S. Elangovan resigned from their position of Directors/KMPs of the Company on 08.08.2025. The Partners of Akshayam Creations LLP viz., Mr. S. Sivakumar Non-Executive Director) appointed as Managing Director, Mr. Adinarayana Sripathy Kumar appointed as Chairman and Additional Director (Non-Executive) and Mr. Manoj Kumar Maurya appointed as Additional Director (Non-Executive) and Chief Financial Officer of the Company on 08.08.2025.
The detailed disclosures and updates on Open offer/Takeover and related matters are uploaded under Investors page of this website – Pl refer the same.
The present full composition of Board of Directors of the Company and its Committees is uploaded under Investors page of this website- Pl refer the same.
