PPAP Automotive Board Approves Final Dividend, Merger, and Re-appointment of CMD
PPAP Automotive approved audited financial results for FY26 and recommended a final dividend of ₹1.5 per share. The company also approved the re-appointment of Mr. Ajay Kumar Jain as CMD for three years and a merger of its subsidiary, Avinya Batteries Limited. The Tooling Business will be sold via slump sale.
The merger of a subsidiary and the slump sale of a business division represent significant strategic changes that could materially affect the company's structure, operations, and future prospects. The dividend recommendation also positively impacts shareholders.
The announcement includes approval of financial results, recommendation of a final dividend, re-appointment of key management, and significant corporate restructuring (merger and slump sale), all of which are generally viewed positively by the market.
PPAP Automotive Limited announced that its Board of Directors, in a meeting held on May 11, 2026, approved the audited financial results for the quarter and year ended March 31, 2026. The company's statutory auditors issued an unmodified audit report on these results.
The Board recommended a final dividend of ₹1.5 per equity share of ₹10 each for the financial year ended March 31, 2026, subject to shareholder approval at the upcoming Annual General Meeting (AGM). The dividend, if approved, will be paid within thirty days of the AGM's conclusion. The date of the AGM will be intimated in due course.
Furthermore, the Board approved the re-appointment of Mr. Ajay Kumar Jain as Chairman and Managing Director for a period of three years, from November 1, 2026, to October 31, 2029, pending shareholder approval at the ensuing AGM. Mr. Jain is not debarred from holding a director's office.
In a significant corporate action, the Board approved a scheme of merger for Avinya Batteries Limited, a wholly-owned subsidiary, into PPAP Automotive Limited. This merger is subject to necessary statutory and regulatory approvals.
Additionally, the company approved the slump sale of its Tooling Business to Meraki Precision Tool Engineering Limited, a wholly-owned subsidiary. The consideration for this sale will be in the form of equity shares of the Transferee Company. This transaction is proposed to be completed during FY 2026-27, subject to approvals.
The Board meeting, which commenced at 11:00 AM and concluded at 4:45 PM, also noted the allotment of 37,917 equity shares under the PPAP Automotive Limited Employee Stock Option Plan 2022.
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PPAP Automotive Limited filed this with the NSE as a statutory disclosure, categorised under dividend. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by PPAP Automotive Limited. Read the original for the full detail.