Shareholders at 69th AGM approve issue of Redeemable Cumulative Preference Shares up to ₹50 crore on private placement
At the 69th AGM held on 26 September 2026, members approved issuing Redeemable, Cumulative Preference Shares (RCPS) on a private placement basis.
By ScoutQuest · · 2 min read
- RCPS Issue Size
- not exceeding ₹50 crore
- RCPS Coupon
- not exceeding 12 per cent per annum
- RCPS Tenure
- not exceeding 20 years
- Director Commission
- 1 per cent of net profits for FY 2026-27 to Dr Sundaraswamy Veluswamy, Non-Executive, Non-Independent Director
- AGM Date
- 26 September 2026
What was approved
At the 69th Annual General Meeting held on Saturday, 26 September 2026, shareholders approved two items that the company has now disclosed to the exchange.
- Issue of Redeemable, Cumulative, Preference Shares (RCPS), unlisted, on a private placement basis, in one or more tranches.
- Payment of commission of one (1) per cent on the net profits computed under Section 198 of the Companies Act 2013 for FY 2026-27 (1 April 2026 to 31 March 2027) to Dr Sundaraswamy Veluswamy, Non-Executive, Non-Independent Director, by Special Resolution.
Terms of the RCPS
- Size: amount not exceeding the Authorised Preference Share Capital, i.e. ₹50 crore, to be issued to intending investors.
- Listing: proposed to be listed - No.
- Tenure: not exceeding 20 years; allotment and maturity dates to be decided by the Board at the time of issue.
- Coupon: not exceeding 12 per cent per annum.
- Charge or security over assets: not applicable.
- Special rights, interest or privileges attached: Nil.
- Redemption: from the company's own funds or out of funds raised by a fresh issue of RCPS.
How to read this
Preference shares are an instrument that pays a fixed dividend ahead of equity shares and is repaid (redeemed) on a set date. "Cumulative" means unpaid dividends accumulate and must be paid later. For a finance company, such an issue is a way of raising long-dated funds. Because it is a private placement to intending investors and the instrument is unlisted, it is not open to the public.
The approval is an enabling one. It sets a ceiling on size, cost and tenure; the actual tranches, amounts, coupon and dates rest with the Board at the time of each issue.
For equity shareholders
RCPS are preference shares, not equity shares, so this approval does not by itself change the equity shareholding. The dividend payable on RCPS ranks ahead of equity dividends, and the amounts raised carry a cost of up to 12 per cent per annum.
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More numbers
- Maximum RCPS issue size / Authorised Preference Share Capital₹ 50 crores
- Maximum coupon on RCPSNot exceeding12 per cent per annum
- Maximum tenure of instrumentNot exceeding 20 years
- Director commission on net profits for FY 2026-27one (1) per cent
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