Corrigendum to the Notice of the Postal Ballot dated Friday, May 30, 2025
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Awaiting price reaction for this filing.
CLN Energy has issued a corrigendum on May 29, 2025 to its Postal Ballot Notice dated April 24, 2025, to clarify the use of funds from its preferential issue. The company's Singapore-based promoter, CLN Energy Pte. Limited, will invest a minimum of ₹10 crore through this preferential issue to qualify as Foreign Direct Investment (FDI), which is required under the Uttar Pradesh Government's 'FDI and Fortune 500 Companies Investment Promotion Policy 2023.' The funds will primarily be used to secure leasehold land from the UP Government for setting up a new manufacturing facility. If the land allotment does not go through, the funds will be redirected towards capital expenditure (new machinery) or debt reduction. A new Item No. 2 has been added to the existing e-voting (EVEN 133642), which remains open until 5:00 PM on May 30, 2025. Members who already voted on Item No. 1 are requested to vote on Item No. 2 as well.
This corrigendum provides shareholders with clearer information about the purpose of the preferential issue and the promoter entity's planned ₹10 crore FDI infusion, aiding informed voting. The dependency on government land allotment introduces some execution risk, but the fallback plan for alternative use of funds (machinery or debt reduction) limits downside.