KAKalind526935Board key decisions

Board withdraws ~₹99 crore preferential issue; approves gems unit buy and up to ₹500 Crore fundraise

Board withdrew the proposed preferential issue of ~8.61 crore equity shares at ₹11.50 each, aggregating ~₹99 crore, as the proposed allottees were unwilling to proceed at that price.

By ScoutQuest · Sat 31 Oct 2026, 6:44 PM IST · 3 min read

Preferential Issue Withdrawn

~8.61 crore equity shares at ₹11.50 each, aggregating ~₹99 crore

Acquisition Consideration

Rs. 1 crore cash for 1 lakh equity shares, giving 100% shareholding and control

Fundraise Approval

up to ₹500 Crore through rights issue, preferential issue, warrants or other permissible modes

The board of directors met on October 31, 2026 from 6:00 P.M. to 6:35 P.M. and approved five proposals.

Preferential issue withdrawn

• The board had approved on September 17, 2026 a fresh preferential issue of up to ~8.61 crore equity shares at an issue price of ₹11.50 per equity share, aggregating ~₹99 crore.
• Members approved this at the 32nd Annual General Meeting held on September 29, 2026.
• The company had revised its Application No. 279330 with BSE for in-principle approval, which remained pending as on the date of this meeting.
• Stated reasons for withdrawal: prevailing market conditions and the unwillingness of the proposed allottees to proceed with the transaction at the current issue price of ₹11.50 per equity share.
• The board also approved making the necessary disclosures to BSE, withdrawing the application and authorising the directors and/or company secretary to take the required actions.

Gems and diamonds subsidiary

• The board considered and approved acquiring Kalind Gems & Diamonds Limited, an unlisted public limited company, as a Domestic Wholly Owned Subsidiary.
• Consideration: cash of Rs. 1 crore for 1 lakh equity shares at face value of Rs. 10/- per share, giving 100% shareholding and control.
• The target was incorporated on 15/07/2024, operates in the gems, diamonds and allied business activities, and has a presence in India.
• Authorised capital is 10,00,00,000/- and paid-up capital is INR 10 lakh.
• Turnover was Rs. 12,85,76,212 for the year ended 31.03.2026 and Rs. 17,47,953 for the period from 15 July 2024 to 31 March 2025; for the year ended 31.03.2024 it was shown as NA.
• The acquisition is a related party transaction, as the promoters have a substantial interest in the target and are also its directors; it is to be undertaken on an arm's length basis.
• Acquisition formalities are to be completed within 30 days from members' approval. The move is intended to facilitate the company's entry into gems, diamonds and allied activities, subject to member approval for alteration of the main objects.

Fundraising approved in principle

• The board approved in principle raising funds aggregating up to ₹500 Crore through one or more permissible modes, including equity shares on a rights basis, a preferential issue, warrants convertible into equity shares, or any other permissible securities.
• The choice of mode will depend on prevailing market conditions and business requirements, and is subject to necessary approvals of the board, members, BSE, SEBI and other regulatory or statutory authorities.
• Directors and/or the company secretary were authorised to explore suitable fund-raising options.

MOA and postal ballot

• The board approved alteration and realignment of the Main Object Clause of the Memorandum of Association, aligned to the company's proposed business activities and future growth opportunities. The changes involve modifying existing clauses, inserting new ones and renumbering.
• The new objects cover earth-moving and construction equipment on lease, hire or rental, civil works and infrastructure development; real estate development, construction and property dealing; and buying, selling, trading, processing and manufacturing of diamonds, precious and semi-precious stones and related jewellery.
• This is subject to approval of shareholders by way of a Special Resolution.
• The board also approved the notice of a postal ballot seeking members' approval through requisite resolutions.

What a retail investor can take away

• The earlier plan to bring in about ₹99 crore of equity at ₹11.50 per share did not go ahead, with the update citing market conditions and allottee reluctance at that price.
• In its place, the board has an in-principle mandate to raise up to ₹500 Crore, but the mode and terms are yet to be decided and approvals are still required.
• The company is adding a gems and diamonds arm through a small cash purchase from a related party, and is widening its stated objects towards equipment leasing, infrastructure and real estate.
• Each of these steps — the acquisition, the object clause changes and the fundraising — is tied to further member or regulatory approvals.

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