Kanoria Chemicals & Industries Limited has informed the Exchange regarding Outcome of Board Meeting held on February 12, 2026.
KANORICHEM · price
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Kanoria Chemicals' Board, at its meeting on February 12, 2026, approved increasing the Authorised Share Capital from Rs. 50 crore to Rs. 100 crore. The increase is to create room for issuing up to 5,00,000 Non-Convertible, Non-Cumulative, Non-Participating Redeemable Preference Shares (NCRPS) of Rs. 1,000 each, aggregating Rs. 50 crore. These preference shares will be issued on a private placement basis to R.V. Investment and Dealers Limited, a Promoter Group entity, carrying a 7% non-cumulative dividend. The shares are redeemable at par over 5-12 years in five equal annual installments, with the Board retaining discretion to redeem earlier after 5 years. The Memorandum of Association will be altered to reflect the new capital structure, and the issuance is subject to shareholder and regulatory approvals.
This is a Rs. 50 crore capital infusion by the Promoter Group, which signals promoter confidence and strengthens the company's balance sheet. For existing equity shareholders, there is no immediate dilution since these are non-convertible preference shares, but the fixed 7% dividend obligation on NCRPS will be a recurring financial commitment for the company.