Please take on your record the enclosed Notice of the EXTRA ORDINARY GENERAL MEETING of the Company dated 16th May, 2025, viva VC.
Price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Garware Marine Industries has called an EGM on May 16, 2025 (via video conferencing) to seek shareholder approval for three special resolutions. The key proposal is to provide a Corporate Guarantee of up to Rs. 40 Crores on behalf of Global Offshore Services Limited (GOSL), a related party with common promoters and directors, to help GOSL secure a loan for purchasing a vessel to expand its fleet. GOSL is the company's primary customer, accounting for the majority of its ship repair revenue. In return, Garware Marine will earn a guarantee commission of 0.75% per annum on the guarantee amount. Additionally, the company is seeking approval to raise its overall Section 186 lending/investment threshold to Rs. 100 Crores. The company has clarified it has no outstanding debt, so no lender approvals are needed.
Positive in the sense that supporting GOSL's fleet expansion could boost Garware Marine's repair revenues going forward, plus it earns a 0.75% guarantee fee. However, shareholders should note this is a material related-party transaction exposing the company to Rs. 40 Crores of contingent liability if GOSL defaults on its loan. Related parties cannot vote on these resolutions, so approval depends on independent shareholder support.