The Board of Directors reviewed the SEBI (Merchant Bankers) Amendment Regulations, 2025 and noted that the company needs to update its policies, governance, compliance and operational process ....
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Galactico Corporate Services, a SEBI-registered Category I Merchant Banker, held a board meeting on March 14-15, 2026 to align with the SEBI (Merchant Bankers) Amendment Regulations, 2025. The Board noted the company needs to maintain a liquid net worth of Rs 12 crore by December 31, 2026, and acknowledged that it currently qualifies for Category II status (Rs 7.5-10 crore net worth norms), though it intends to scale up to Category I (Rs 25 crore by Jan 2027, Rs 50 crore by Jan 2028). The Board approved the sale of 73.77% of its 99.77% stake in subsidiary Seven Hills Beverages Limited (SHBL) for Rs 6.67 crore in cash to Mr. Ronak Shah, reducing its holding to 26% and resulting in loss of control; SHBL had a turnover of Rs 15.01 crore and net worth of Rs 5.36 crore. Additionally, Rs 12 crore of unsecured debentures held in subsidiary Instant Finserve will be converted into secured optionally convertible redeemable debentures backed by immovable property and receivables. A postal ballot will be sent to shareholders seeking approval for the divestment.
For shareholders: The divestment of SHBL will unlock Rs 6.67 crore in cash, help meet the Rs 12 crore liquid net worth requirement, and refocus the company on its core merchant banking business, though SHBL will cease to be a subsidiary and Palwe Pest Control will stop being a step-down subsidiary. The debenture conversion from unsecured to secured strengthens balance sheet protection, but the company must still raise capital to pursue Category I status.