Revised Outcome of Meeting of Board of Directors held today i.e. Friday, 4th April, 2025
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IGC Industries' board approved several major decisions in its April 4, 2025 meeting. The biggest move is acquiring 38.47% stake (65,40,443 shares) in CNX Corporation Limited for about Rs. 31.39 crore at Rs. 48 per share, paid entirely through a share swap rather than cash. To fund this, IGC will issue 2,61,61,772 new equity shares at Rs. 12 per share (face value Rs. 10 plus Rs. 2 premium) to CCL's shareholders, making CCL an associate company. CCL is in the commodities logistics business (farm-to-consumer deliveries) with FY24 turnover of Rs. 28.79 crore. The board also approved raising authorised share capital from Rs. 35 crore to Rs. 61 crore to accommodate the new issuance. On the management side, Mr. Ziauddin Mohammad was elevated to Managing Director, while Mr. Omprakash Pyarelal Sonar was appointed as Independent Director. Four directors, including the previous Managing Director Mr. Salman Sayyad, resigned effective April 1, 2025 citing personal reasons. An Extra-Ordinary General Meeting will be held to seek shareholder approval.
Existing shareholders will see significant dilution as over 2.61 crore new shares will be issued at Rs. 12 (a steep discount to likely market price) as part of the share swap acquisition. The acquisition gives IGC an associate company in a different line of business (commodities logistics vs. plastics), which may be seen as a diversification move but could also dilute focus. The extensive board reshuffle, including the MD change and multiple resignations, signals a major restructuring phase for this small-cap company.