Enclosed herewith Board Meeting Outcome dated 22/04/2025 for Preferential Issue of 1,78,16,666 Equity Shares to the Allottees at an issue price of Rs.10/- each.
Awaiting price reaction for this filing.
Deccan Bearings Limited's board approved a preferential allotment of 1,78,16,666 equity shares at Rs. 10/- each (at face value) to 56 allottees. The Satani family (Paresh, Tanuj, Ramjibhai, Chirag Satani) acting as persons acting in concert will subscribe to 1,27,64,427 shares, giving them 63.82% of the preferential issue. Combined with a Share Purchase Agreement from existing promoter Satyajit Mishra, their aggregate holding will rise to 1,39,11,931 shares (69.56% of the enhanced capital), triggering an open offer under SEBI Takeover Regulations. The board also proposed raising authorized capital from Rs. 3.25 crore to Rs. 20 crore, increasing borrowing powers to Rs. 1,000 crore, and converting director designations. An EGM is scheduled for May 27, 2025. The Vora family (former promoters) has requested reclassification from 'Promoter' to 'Public' category.
This is a significant change of control event. Existing shareholders face heavy dilution (paid-up equity will grow over 8x from ~21.83 lakh shares to ~200 lakh shares) and a mandatory open offer from the new promoter group. The new promoters are individuals, and the issue price equals face value, which is generally not favorable to existing public shareholders.