ENCLOSED HEREWITH NOTICE OF EGM TO BE HELD ON 27/05/2025 AT 4 PM THROUGH VC
Awaiting price reaction for this filing.
Deccan Bearings Ltd has called an Extraordinary General Meeting on May 27, 2025 at 4:00 PM (via video conferencing) to seek shareholder approval on 11 items. The biggest item is a preferential allotment of 1,78,16,666 equity shares at Rs. 10 per share (face value = issue price), totalling Rs. 17.81 crore, to non-promoter allottees. Four buyers from the Satani family (Paresh, Tanuj, Chirag, and Ramjibhai Satani) will together get 1,27,64,427 shares (63.82% of the expanded capital), which will result in a change of management and trigger a mandatory open offer under SEBI Takeover Rules. After the open offer, these four allottees will be reclassified as promoters. The company also proposes to increase its authorized share capital from Rs. 3.25 crore to Rs. 20 crore to accommodate the issue. Other items include regularization/appointment of 5 directors (including Mr. Priyankbhai Ghelani as Managing Director for 3 years), raising the borrowing limit to Rs. 1,000 crore under Section 180, and approval for loans/investments/guarantees up to Rs. 1,000 crore under Sections 185 and 186.
This is a major corporate event with a clear change of control - existing promoters are being replaced by the Satani family group. Shareholders should expect significant dilution (issued shares rising sharply) and should note the mandatory open offer that will follow. Existing shareholders with small holdings may want to participate in the e-voting window (May 24-26, 2025) as the outcome will reshape the company's ownership and management.