KOTIC · price
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Awaiting price reaction for this filing.
Kothari Industrial Corporation has called an Extra-Ordinary General Meeting on June 13, 2025 at 11:00 AM via video conferencing to seek shareholder approval on eight key items. These include approving the KICL Employee Stock Option Scheme 2025 covering up to 46.86 lakh equity shares, and a preferential allotment of up to 1,36,37,600 equity shares at Rs. 72.60 per share (a premium of Rs. 67.60) to 49 allottees — 48 non-promoters and promoter Rafiq Ahmed (49.51 lakh shares) — aggregating to about Rs. 99 crore. The company is also seeking approval to change the use of proceeds from a recent preferential issue (Rs. 61.79 crore raised in March-April 2025) — originally earmarked for setting up a fertilizer factory — to instead invest about Rs. 21.79 crore in Phoenix Kothari Footwear Limited. Additionally, it seeks approval for material related-party transactions with JR One Kothari Footwear, JR Trading & Services W.L.L., and Evervan Kothari Footwear, each capped at Rs. 100 crore per year for three financial years. Lastly, shareholders will consider the appointment of Mr. Gnanasambandam Venkatraghavan as Independent Director for a five-year term.
The combined preferential issue and ESOP scheme will lead to equity dilution for existing shareholders, while raising about Rs. 99 crore in fresh capital. The proposed change in fund use — pivoting away from the fertilizer factory toward a footwear-related investment — signals a strategic shift and may be viewed positively or negatively depending on investor sentiment on the footwear business.