Board approves converting Rs.7,20,00,000 promoter loan into 48,00,000 shares; authorises Vadodara land buy

Board meeting outcome, 10th October, 2026.

Sat 10 Oct 2026

Loan Converted into Equity

Rs.7,20,00,000

Equity Shares to be Issued

48,00,000 fully paid-up equity shares of face value Re. 1/- each

Conversion Price

Rs. 15/- per share

Board meeting outcome

The Board of Directors met on Saturday, 10th October, 2026 and approved or authorised two items.

Loan converted into equity shares

• The outstanding loan of Rs.7,20,00,000 (Rupees Seven Crore Twenty Lakh Only) availed from Optimus Finance Limited (Promoter) is to be converted into 48,00,000 fully paid-up equity shares.
• The face value of each share is Re. 1/- and the conversion price is Rs. 15/- per equity share.
• The shares aggregate to Rs.7,20,00,000, the same amount as the loan being converted.
• The conversion is being done by exercising the conversion option in the Loan Agreement and the Special Resolution passed by the Members at the 10th Annual General Meeting, pursuant to Section 62(3) of the Companies Act, 2013.
• It is subject to statutory and regulatory approvals wherever necessary and applicable.

What this means in simple terms

A loan the company had taken from an entity that is also a promoter is being turned into shares. The company will issue new shares to that promoter entity instead of repaying the loan in cash. Read together, the amount of the loan and the value of the shares issued are the same figure, Rs.7,20,00,000.

Application for approval

• The Board authorised making an application to BSE Limited for the requisite in-principle approval for the proposed issue/allotment of equity shares under the conversion, and to undertake all necessary acts in connection with it.

Production facilities for export

• The Board considered a proposal to set up production facilities domestically for export.
• While the detailed Project Report is being prepared, the Board authorised the MD or the CFO of the company to execute the "Agreement to Purchase" industrial land near the city of Vadodara, and to initiate all necessary acts, deeds, matters and things in connection with it.

What this means in simple terms

This is an early-stage step. The company has authorised its MD or CFO to sign an agreement to buy industrial land near Vadodara, with the stated purpose of domestic production for export. The detailed Project Report is still being prepared.

Points a retail investor may want to track

• The in-principle approval from BSE and the subsequent allotment of the 48,00,000 shares to the promoter entity.
• The completion of the land purchase agreement near Vadodara and the Project Report for the export-oriented production facility.

Tone check: both items are disclosures of decisions taken at the Board meeting, with the share conversion and the land purchase both subject to further approvals and documentation as described above.

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