RFRamkrishna Forgings532527Board key decisions

Board approves object clause change to explore semiconductors, aerospace, drones and defence

Board approved a change to the company's object clause to explore semiconductors, aerospace, drones, defence and related technologies.

By ScoutQuest · Fri 30 Oct 2026, 8:04 PM IST · 4 min read

Interim Dividend

1st interim dividend of Rs. 2/- per equity share for FY 2026-27

Record Date

6 November 2026

JV Investment Limit Increase

Rs. 56.76 Crores

A change in what the company is allowed to do

At its meeting on 30 October 2026, the Board approved an alteration to the Object Clause of the Memorandum of Association. The change adds a new sub-clause 9 to Clause II.(A) of the MOA, after the existing sub-clause 8. It is subject to the approval of shareholders.

Why the company says it is doing this

• The company says it is exploring a foray into the business of designing, developing, manufacturing and engineering products, systems and solutions for semiconductors, aerospace applications, drones, defence and other related technologies, either by itself or through its subsidiaries.
• It states that to diversify into these activities, a new clause under the objects of the MOA was considered necessary.

What the new clause covers

• The business may be carried on directly, or through agreements, contracts, partnerships, alliances or joint ventures, with entities in India or abroad.
• It lists engineering and technology products, systems, equipment, tools, machines and components for commercial, industrial, agricultural, civil, defence and space use, including rockets and missiles, electronic warfare and surveillance, battle tanks and armoured vehicles, arms and ammunition, and naval systems.
• It also names space research and exploration, unmanned aerial vehicles (UAVs), unmanned aircraft systems (UASs), small unmanned aerial vehicles (SUAVs), route patrolling vehicles (RPV), remotely piloted aircrafts (RPAs), unmanned water vehicles (UWV), unmanned ground vehicles (UGV), counter UAVs, drones and drone controllers.
• Technologies covered include mechanical, optical, electrical, electronic and software, using in-house or outsourced facilities.

Other decisions from the same board meeting

• Un-audited financial results (standalone and consolidated) for the quarter and half year ended 30 September 2026, along with the limited review reports of the joint statutory auditors, were approved. The statement of assets and liabilities and the cash flow statement for the half year were also approved.
• A 1st interim dividend of Rs. 2/- per equity share of face value Rs. 2/- each for FY 2026-27 was declared, to be paid within 30 days from the date of declaration, subject to TDS. The record date is Friday, 6 November 2026.
• Mr. Subir Chakraborty and Mr. Anurag Vohra were appointed as Non-Executive Independent Directors, not liable to retire by rotation, for a term of 5 (five) consecutive years with effect from 30 October 2026, subject to shareholder approval. Both profiles show long operating experience, including senior roles at Exide Industries and TI Clean Mobility respectively.
• An amendment to the RKFL ESOP Scheme 2023, including extending its applicability to employees of the company's subsidiaries, was approved subject to shareholder approval.
• A Postal Ballot Notice was approved to seek shareholders' approval for these items.
• Amendments to five policies were approved: Anti-Bribery and Anti-Corruption, preservation and archival of documents and records, prevention of sexual harassment at the workplace, determining material subsidiary, and Corporate Social Responsibility.

About the joint venture investment

• The Board approved an increase in the investment limit by Rs. 56.76 Crores, in one or more tranches, by way of equity contribution in Ramkrishna Titagarh Rail Wheels Limited, based on the Audit Committee's recommendation. Consideration is cash, by subscription.
• The company holds 51% of this joint venture and is the lead partner of the consortium; the remaining 49% is held by Titagarh Rail Systems Limited.
• The joint venture is setting up what the update describes as Asia's second-largest forged wheel manufacturing plant at Puduvoyal Village, Tiruvallur district, Chennai, Tamil Nadu, with an annual capacity of around 2,28,000 wheels.
• The total project cost is estimated at Rs. 2181.41 Crores, in two phases. Under Phase-1 the company has undertaken to establish the entire plant with the full forging capacity of around 2,28,000 wheels and the first phase of the machining line; the second phase was planned to increase machining capacity.
• The joint venture's paid-up capital as on date is ~Rs. 532.65 crore. It was incorporated on 09/06/2023 and is yet to commence commercial production; turnover as on 31.03.2026 is stated as yet to commence commercial production.

How to read this

• The MOA change widens the items the company is permitted to pursue. In the update's own words, the company is exploring this foray; the enabling clause and shareholder approval come first.
• Shareholder approval is required for the MOA alteration, the two director appointments and the ESOP amendment, and a postal ballot notice has been approved to seek it.
• The joint venture investment is a cash equity contribution, in one or more tranches, into an entity that is yet to start commercial production.

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