Approval of Investment in Subsidiary Company "Instant Finserve Private Limited" exceeding Limits under Section -186 of Companies Act, 2013, Postal Ballot Notice and Appointment of Scrutinizer.
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The board of Galactico Corporate Services Ltd, held on 16 December 2025, approved investing up to Rs. 6 Crores in its subsidiary Instant Finserve Private Limited. Since this exceeds the limits under Section 186 of the Companies Act, shareholder approval will be sought through a Postal Ballot process. The subsidiary will primarily use the funds to repay outstanding optionally convertible debentures (OCDs) held by the promoter group, reducing its debt burden, with any remaining proceeds for general corporate purposes. Galactico will fund this investment from the proceeds of its recently concluded rights issue, deploying the amount in one or more tranches on a long-term basis. The board also appointed M/s Akshay R Birla & Associates as Scrutinizer to oversee the postal ballot process.
For shareholders, this is a use of rights issue proceeds to strengthen the subsidiary's balance sheet by clearing promoter-group debt, which is a related-party transaction. While it may support long-term growth, it does not directly impact Galactico's standalone earnings or stock price in the short term, pending shareholder approval.