Board withdraws preferential issue, approves gems subsidiary, MOA revamp and fund-raise up to ₹500 Crore
Withdrew the proposed preferential issue of ~8.61 crore Equity Shares at ₹11.50/- each (~₹99 crore) — BSE in-principle approval stayed pending and allottees were unwilling at that price.
By ScoutQuest · · 3 min read
- Acquisition Consideration
- Rs. 1 crore cash (1 lakh shares, 100%) for Kalind Gems & Diamonds Ltd
- Withdrawn Preferential Issue
- ~8.61 crore Equity Shares at ₹11.50/- each (~₹99 crore)
- Approved Fund-Raise Limit
- up to ₹500 Crore
On 31 October 2026 the board of Kalind Limited met from 6:00 P.M. to 6:35 P.M. and approved five items together. Three of them change the shape of the company: a rewritten main object clause, a wholly owned subsidiary in gems and diamonds, and a plan to raise up to Rs. 500 crore. One item is a withdrawal.
The share issue is withdrawn
In September 2026 the board had approved a preferential issue of up to ~8.61 crore Equity Shares at ₹11.50/- per Equity Share, aggregating ~₹99 crore, and members had approved it at the 32nd Annual General Meeting on 29 September 2026. The company had revised its Application No. 279330 with BSE Limited for in-principle approval, which remained pending. The board has now decided to withdraw the proposed issue, citing prevailing market conditions and the unwillingness of the proposed allottees to proceed on the current issue price of ₹11.50/- per Equity Share, and has approved withdrawing the BSE application.
Buying Kalind Gems & Diamonds Limited
- Target: Kalind Gems & Diamonds Limited, an unlisted public limited company incorporated on 15/07/2024, in gems, diamonds and allied business activities, with presence in India.
- Deal: 1 lakh Equity Shares, being 100% of its equity share capital, for Rs. 1 crore (Rupees One Crore Only) in cash, at face value of Rs. 10/- per share.
- Result: it becomes a Domestic Wholly Owned Subsidiary of the company.
- Related party: the promoters have a substantial interest in and are also directors of the target, so this is a Related Party Transaction, to be done on an arm's length basis.
- Timeline: acquisition formalities to be completed within 30 days from member's approval.
- Target's size: authorised capital 10,00,00,000/-, paid-up capital INR 10 lakh, and turnover of 12,85,76,212 for the year ended 31.03.2026 and 17,47,953 for the period from 15 July 2024 to 31 March 2025.
Changes to the main objects
- Existing Clause 5 and 6 are replaced by a new Clause 1 covering leasing, hiring and renting of earth-moving equipment, construction machinery and industrial equipment, civil works and infrastructure projects, and repair and maintenance of such machinery.
- Existing Clause 1, 2, 3 and 4 are replaced by a new Clause 2 covering real estate development, construction and infrastructure works.
- Existing Clause 7, 8 and 9 are renumbered as Clause 3, 4 and 5.
- A new Clause 6 is inserted covering buying, selling, trading, processing and manufacturing of diamonds, precious and semi-precious stones and gemstones including lab-grown, and dealing in diamond jewellery, in India and abroad.
- These amendments are subject to shareholder approval by way of a Special Resolution.
Fund-raise plan
The board approved in principle raising funds aggregating up to ₹500 Crore (Rupees Five Hundred Crore Only) through one or more permissible modes, including a rights issue, preferential issue, warrants convertible into Equity Shares, or any other permissible securities, depending on market conditions and business requirements. This is subject to approvals of the Board, Members, BSE Limited, SEBI and other authorities, and directors and the company secretary have been authorised to explore the options.
Postal ballot
The board approved the notice of a postal ballot seeking members' approval by way of the requisite resolution(s), along with the explanatory statement.
Also from Kalind
Board withdraws proposed ~₹99 crore preferential issue; approves gems unit acquisition, in-principle ₹500 Crore fund-raise
31 Oct 2026
Kalind Ltd to acquire 100% of Kalind Gems & Diamonds for Rs. 1 crore cash as wholly owned subsidiary
31 Oct 2026
Board withdraws ~₹99 crore preferential issue; approves gems unit buy and up to ₹500 Crore fundraise
31 Oct 2026
More numbers
- Preferential issue shares withdrawn8,60,86,956 Equity Shares
- Issue price per Equity Share₹11.50/- per Equity Share
- Aggregate preferential issue size₹98,99,99,994/-
- Fund-raise approved in principle₹500 Crore
- Cost of acquiring Kalind Gems & Diamonds LtdRs. 1,00,00,000/-
- Equity shares to be acquired in target1,00,000 Equity Shares
- Shareholding acquired in target100%
- Target turnover, year ended 31.03.202612,85,76,212
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