ENCLOSED HEREWITH NOTICE OF EGM TO BE HELD ON 27/05/2026 AT 4 PM THROUGH VC
Awaiting price reaction for this filing.
Deccan Bearings Ltd has called an EGM on 27 May 2025 to seek shareholder approval for multiple major corporate actions. The biggest item is a preferential allotment of 1,78,16,666 equity shares at Rs. 10 each (face value) to 56 non-promoter allottees, raising about Rs. 17.82 crore. Four members of the Satani family will together get around 63.82% of the enlarged capital, which will trigger a change of management and an open offer under SEBI Takeover Regulations once the new promoter status kicks in. To enable this, the company proposes raising its authorised share capital from Rs. 3.25 crore to Rs. 20 crore (2 crore shares of Rs. 10 each). The EGM also seeks to regularise/appoint six directors including three independent directors and appoint Priyankbhai Ghelani as Managing Director for 3 years. Additionally, the company wants shareholder nod to raise its borrowing limit and create security on assets up to Rs. 1,000 crore, and to give loans, investments, guarantees or security up to Rs. 1,000 crore under Sections 185 and 186.
This is effectively a takeover event - the Satani family group will take control of the company, which may lead to a sharp shift in business direction, significant dilution for existing shareholders, and a likely mandatory open offer. The proposed Rs. 1,000 crore borrowing and investment limits (versus the current Rs. 3.25 crore authorised capital) signal that the new management plans a major scale-up or restructuring, which could be positive if executed well but carries high execution and dilution risk for current public shareholders.