Shareholder Meeting - EGM to be held on 09th June, 2025
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Corporate Merchant Bankers Limited has called an Extra-Ordinary General Meeting on 9 June 2025 to seek shareholder approval on three resolutions. First, the company proposes to increase its authorized share capital sharply from Rs. 7 crore (70 lakh equity shares of Rs. 10) to Rs. 95 crore (9.5 crore equity shares of Rs. 10), with a corresponding amendment to the Memorandum of Association. Second, it seeks approval to issue up to 8,16,47,431 equity shares at Rs. 10 per share to 10 non-promoter entities on a preferential basis, purely to convert outstanding unsecured loans of about Rs. 81.64 crore into equity. Third, it proposes a fresh preferential allotment of up to 1.5 crore equity shares at Rs. 10 per share to two non-promoter entities, Safelock Consultancy and Wildpiano Software Solutions. The shares are valued using NAV, PER and PECV methods with a registered valuer's certificate, and the relevant date is 9 May 2025.
The proposals are significantly dilutive for existing shareholders since the equity base can expand many times over (authorized capital alone rises over 13x). Loan-to-equity conversion of Rs. 81.6 crore will reduce liabilities and strengthen net worth, but it also shifts ownership toward non-promoter lenders, who together with the fresh preferential issue could end up holding a large chunk of the company. Shareholders should evaluate dilution, the loss of any future repayment flexibility, and the absence of promoter participation.