Geekay Wires Limited has informed the Exchange regarding Notice of Postal Ballot
GEEKAYWIRE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Geekay Wires Limited has issued a Postal Ballot Notice seeking shareholder approval for three resolutions. First, the company wants to increase its borrowing limit to Rs. 500 Crores under Section 180(1)(c) of the Companies Act, 2013. Second, the Board seeks approval to create mortgages or charges on the company's movable and immovable properties to secure borrowings from banks, financial institutions, and other lenders. Third, and most significant, the company is seeking approval for a material Related Party Transaction (RPT) with Geekay Wires Limited (USA), a company 100% owned by Director Ashish Kandoi. The proposed export sales to the USA entity are valued at Rs. 350 Crores, representing 75% of the company's annual turnover. For FY25, export sales to the related party were Rs. 178.32 Crores. The RPT approval is sought for a 5-year period with aggregate value ranging from Rs. 200 Crores to Rs. 400 Crores.
The proposed RPT with Geekay Wires USA (75% of turnover) is a major red flag due to heavy dependency on a related party and Director Ashish Kandoi's full ownership. The massive increase in borrowing powers to Rs. 500 Crores indicates potential debt-funded expansion or acquisitions. Shareholders should carefully evaluate whether these transactions are in their interest.