Shareholders approve increase in authorised share capital to Rs. 95 crore; capital clause of MoA altered
At the 37th AGM held on September 23, 2026, shareholders passed an Ordinary Resolution altering Clause V (capital clause) of the Memorandum of Association.
- AGM Date
- September 23, 2026
- Authorised Share Capital - Old
- Rs. 85,00,00,000
- Authorised Share Capital - New
- Rs. 95,00,00,000
- New Equity Shares Created
- 1,00,00,000 equity shares of Rs. 10 each
- Preference Shares Cancelled
- 62,50,000 unissued preference shares of Rs. 10 each (Rs. 6,25,00,000)
What was approved
At the 37th Annual General Meeting held on September 23, 2026 through video conferencing, members passed an Ordinary Resolution to reclassify and increase the authorised share capital and to amend the capital clause (Clause V) of the Memorandum of Association.
The change in numbers
- Earlier: Rs. 85,00,00,000 divided into 7,87,50,000 equity shares of Rs. 10 each and 62,50,000 preference shares of Rs. 10 each.
- Step 1: cancellation of 62,50,000 unissued preference shares of Rs. 10 each, aggregating Rs. 6,25,00,000, reclassified into equity, giving 8,50,00,000 equity shares of Rs. 10 each.
- Step 2: increase to Rs. 95,00,00,000 by creation of an additional 1,00,00,000 equity shares of Rs. 10 each.
- New Clause V: authorised share capital of Rs. 95,00,00,000 divided into 9,50,00,000 equity shares of Rs. 10 each.
What it means in simple terms
Authorised share capital is the maximum amount of share capital a company is permitted to issue under its constitutional documents. Raising it does not by itself issue any new shares to anyone and does not change existing shareholders' holdings today. It creates legal headroom so the company can issue shares later if and when the Board decides and other approvals are obtained.
Stated reason
The Board, at its meeting on August 04, 2026, considered the step necessary in view of the company's future business plans, growth and funding requirements.
What investors may watch
Whether the company subsequently announces any specific fund-raising or share issuance using this expanded headroom, and the terms of any such issuance, since new equity issued in future can dilute existing shareholders' percentage holdings.
The resolution also authorises the Board to file the necessary forms with the Registrar of Companies and the Ministry of Corporate Affairs to give effect to the change.
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More numbers
- Earlier authorised share capitalRs. 85,00,00,000
- Revised authorised share capitalRs. 95,00,00,000
- Equity shares under revised clause9,50,00,000 Equity Shares
- Face value per shareRs. 10/- each
- Earlier equity shares7,87,50,000 Equity Shares
- Unissued preference shares cancelled62,50,000 unissued preference shares
- Value of preference shares cancelledRs. 6,25,00,000
- Additional equity shares created1,00,00,000 Equity Shares
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