Outcome of Board Meeting to be held on 02-04-2025
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Baroda Extrusion Ltd's Board approved increasing authorised share capital from Rs. 15 crore to Rs. 20 crore (adding 5 crore equity shares of Re. 1 each). It also cleared a preferential issue of up to 2,10,90,892 equity shares to non-promoters at Rs. 8.25 per share (Rs. 7.25 premium), raising around Rs. 17.4 crore in cash. Additionally, 2,42,42,424 shares will be issued to promoter and Managing Director Mr. Kanugo Parasmal B. at Rs. 8.25 each by converting about Rs. 20 crore of unsecured loan into equity. Total preferential issue size is approximately Rs. 37.4 crore. Post-issue, the promoter's stake will rise sharply from 16.10% to 53.48%, giving him controlling interest. An Extraordinary General Meeting has been scheduled for 2nd May 2025 to seek shareholder approval.
This is a major equity dilution for existing public shareholders, with total share count expanding by roughly 30%. On the positive side, the loan-to-equity conversion of Rs. 20 crore strengthens the balance sheet by reducing liabilities, and the promoter's increased stake to a majority holding may signal long-term commitment. The stock could see some short-term pressure given the large preferential issuance at a fixed price.