NELCO Limited has informed the Exchange regarding Notice of Postal Ballot
NELCO · price
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NELCO Limited is seeking shareholder approval via postal ballot for four resolutions: (1) creation of charge on assets up to Rs. 400 crore under Section 180(1)(a), (2) enhancement of borrowing limits to Rs. 400 crore under Section 180(1)(c), (3) issue of non-convertible debentures on private placement basis up to Rs. 210 crore, and (4) material related party transactions with Tata Capital Limited up to Rs. 201 crore for FY 2026-27. The company states these are needed to support business operations and strategic investments. The related party transaction with Tata Capital exceeds the materiality threshold of Rs. 30.6 crore (10% of annual consolidated turnover) and requires ordinary resolution approval even though it is in ordinary course of business and at arm's length. Remote e-voting runs from May 15, 2026 to June 13, 2026.
Shareholders should note that approval of these resolutions will give the board significant flexibility to raise debt up to Rs. 400 crore and issue NCDs up to Rs. 210 crore, which could impact the company's leverage and financial position. The related party transaction with Tata Capital (Rs. 201 crore) requires ordinary resolution approval and represents a material transaction with a group company.