Key Quantitative Figures

The company proposes to issue up to 42,50,000 (4.25 million) equity shares of face value ₹10 each through a Qualified Institutions Placement (QIP).

Dates of Action

  • Postal Ballot Notice Date: June 04, 2026
  • Disclosure to BSE: June 08, 2026
  • Cut-off Date for Voting Eligibility: June 05, 2026
  • Remote E-Voting Period: June 09, 2026 (9:00 AM IST) to July 08, 2026 (5:00 PM IST)
  • Result Declaration: On or before July 10, 2026
  • Allotment Completion Deadline: Within 365 days from shareholder approval (by July 08, 2027)

Parties Involved

  • Stock Exchange: BSE Limited
  • Registrar & Transfer Agent: Purva Sharegistry India Private Limited
  • E-Voting Service Provider: Purva Sharegistry India Private Limited
  • Scrutinizer: Mr. Malay Desai, Practicing Company Secretary (Membership No. ACS 48838, CP No. 26051)
  • Regulatory References: SEBI, Ministry of Corporate Affairs, RBI

Purpose/Rationale

The net proceeds from the QIP are intended for:

  • Augmentation of working capital requirements
  • Funding purchase of materials/inventory
  • Financing trade receivables arising in ordinary course of business
  • General corporate purposes
  • Other permissible purposes under applicable laws

The deployment towards inventory and receivables is expected to support the company's growth initiatives and enhance operational capabilities.

Financial/Operational Impact

The QIP will:

  • Raise capital through equity issuance to Qualified Institutional Buyers (QIBs)
  • Not result in any change of control
  • Result in equity dilution proportional to shares issued
  • Have shares ranking pari passu with existing equity shares
  • Require lock-in of 1 year for QIB allottees (except on recognized stock exchange)

Capital Structure Impact

  • Maximum Dilution: Up to 42,50,000 new equity shares
  • Post-issue Capital: Increased by the number of shares actually issued
  • Voting Rights: One vote per equity share
  • Ranking: Pari passu with existing shares in all respects including dividend and voting rights

Key Terms and Conditions

  • Minimum Allotment to Mutual Funds: 10% of issue size (may be allotted to other QIBs if not subscribed)
  • Maximum Allotment to Single QIB: Not more than 50% of issue size
  • Pricing: At or above floor price determined per SEBI ICDR Regulations, with discount not exceeding 5%
  • Lock-in: 1 year for QIB allottees
  • Exclusions: No allotment to promoters or persons related to promoters
  • Listing: Shares will be listed on BSE where existing shares are listed

Governance Aspects

  • Mr. Keyoor Madhusudan Bakshi (DIN: 00133588) signed as Director
  • Board meeting held on June 04, 2026 approved the proposal
  • Scrutinizer appointed to ensure fair and transparent voting process
  • None of the directors or key managerial personnel are interested in the resolution except to the extent of their shareholding

Voting Process Details

  • Cut-off Date: June 05, 2026 for determining voting eligibility
  • Voting Method: Remote e-voting only (no physical ballot)
  • Voting Platform: Purva Sharegistry India Private Limited
  • Result Publication: Company website (www.kanel.in) and Purva Sharegistry website
  • Scrutinizer Report: To be submitted by July 10, 2026

Additional Information

  • The notice is being sent electronically to all members registered email addresses
  • Members can temporarily register email addresses with RTA for voting purposes
  • The resolution requires special majority approval
  • The company's registered office is at 1503, Westport, Sindhu Bhavan Road, Nr. S P Ring Road, Ahmedabad, Shilaj-380059