Board approves raising authorised share capital to Rs. 5.55 crore and borrowing limit to Rs. 100 crore
Board meeting on 12 October 2026 approved several proposals that now go to shareholders through a postal ballot.
- Authorised Share Capital Increase
- from Rs. 3.25 crore to Rs. 5.55 crore
- Additional Equity Shares Created
- 23,00,000 equity shares of Rs. 10 each
- Borrowing Limit
- Rs. 100 crore outstanding at any time
What the board approved
- Alteration of Clause III of the Memorandum of Association, subject to members' approval by special resolution through postal ballot and registration by the Registrar of Companies, Gujarat.
- Increase in the authorised share capital from Rs. 3.25 crore (32,50,000 equity shares of Rs. 10 each) to Rs. 5.55 crore (55,50,000 equity shares of Rs. 10 each), by creating 23,00,000 additional equity shares of Rs. 10 each, ranking pari passu with the existing equity shares. This needs members' approval by ordinary resolution through postal ballot.
- Adoption of a new set of Memorandum of Association in line with Table A of Schedule I to the Companies Act, 2013, subject to a special resolution through postal ballot.
- Adoption of a new set of Articles of Association in line with Table F of Schedule I to the Companies Act, 2013, subject to a special resolution through postal ballot.
- Increase in the borrowing powers of the Board under Section 180(1)(c) of the Companies Act, 2013 to Rs. 100 crore (Rupees One Hundred Crore) outstanding at any time, a limit that applies even if total borrowings exceed the aggregate of the paid-up share capital, free reserves and securities premium. This needs a special resolution through postal ballot.
- Approval of the Postal Ballot Notice to be circulated to shareholders, with the cut-off date for determining voting eligibility fixed as Friday, October 9, 2026.
- Appointment of M/s. Prasad and Partners LLP (formerly known as ALAP & Co. LLP), Practicing Company Secretaries, Ahmedabad, as Scrutinizer for the postal ballot process, including e-voting.
Reading the share capital change
The authorised share capital is the ceiling up to which a company can issue shares. The proposal raises that ceiling from Rs. 3.25 crore to Rs. 5.55 crore, by creating 23,00,000 additional equity shares of Rs. 10 each. The new shares will rank pari passu with the existing equity shares. The update states the increase is subject to members' approval by ordinary resolution through postal ballot.
Borrowing limit
The board approved raising its borrowing limit to Rs. 100 crore outstanding at any time. The update notes this limit applies even if total borrowings exceed the aggregate of the paid-up share capital, free reserves and securities premium of the company. The change is subject to members' approval by special resolution through postal ballot.
What happens next
All the resolutions are subject to shareholders' approval through a postal ballot. The board has approved the Postal Ballot Notice and fixed Friday, October 9, 2026 as the cut-off date for determining which shareholders are eligible to vote. M/s. Prasad and Partners LLP has been appointed to scrutinize the postal ballot process, including e-voting, in a fair and transparent manner.
More numbers
- Existing authorised share capitalRs. 3,25,00,000/-
- Proposed authorised share capitalRs. 5,55,00,000/-
- Existing authorised equity shares32,50,000 Equity Shares
- Proposed authorised equity shares55,50,000 Equity Shares
- Additional equity shares to be created23,00,000 additional Equity Shares
- Face value per equity shareRs. 10/-
- Increased borrowing limit of the BoardRs. 1,00,00,00,000/-
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