HIMATSEIDENSEHimatsingka Seide Limited· Textile ProductsLowNeutral
Announced Wed, 29 Apr · 18:38 IST

Himatsingka Seide Limited has informed the Exchange regarding Notice of Postal Ballot

Board & Shareholder Meetings View source PDF

HIMATSEIDE · price

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AI summary

Himatsingka Seide has issued a Postal Ballot Notice seeking shareholder approval for three Special Resolutions. The first two seek approval for the remuneration of Executive Chairman Mr. Dinesh Kumar Himatsingka and Executive Vice Chairman & Managing Director Mr. Shrikant Himatsingka (father and son) for their remaining two-year tenure ending May 31, 2028. Each director's basic salary is fixed at Rs. 21.62 lakh per month, with a total fixed remuneration cap of Rs. 4.50 crore per annum, plus commission linked to net profits. The aggregate pay for all promoter executive directors is capped at 10% of net profits, and individual remuneration may exceed the Rs. 5 crore / 2.5% of net profits SEBI threshold. The third resolution seeks approval to adopt amended and restated Articles of Association. E-voting runs from April 30, 2026 to May 29, 2026, with results to be declared by June 1, 2026.

Likely market impact

Shareholders will vote on continued high pay for the promoter family (DK Himatsingka holds 13.84% and Shrikant Himatsingka holds 18.53% of the company) at a time when the company's revenue declined from Rs. 2,549 crore in FY24 to Rs. 2,220 crore in FY25, and profit before tax fell sharply from Rs. 164 crore to Rs. 85 crore. While the resolutions are likely to pass given promoter control, the remuneration terms — including the ability to pay in years of inadequate profits — could draw dissent from institutional investors focused on governance and pay-for-performance.