Nitco Limited has informed the Exchange regarding Notice of Postal Ballot
NITCO · price
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Nitco Limited has issued a postal ballot notice seeking shareholders' approval for a Material Related Party Transaction with Authum Investment & Infrastructure Limited, which holds a 49.10% stake in the company and is classified as a related party. The transaction involves availing a Working Capital Facility and an Invoice Discounting cum Loan Facility of up to INR 75 Crores for FY2026-27, at an interest rate of 10% per annum, secured against inventory and receivables. The proposed value represents approximately 23.86% of Nitco's annual consolidated turnover, qualifying it as a Material RPT under SEBI LODR Regulations. Similar borrowings (Rs. 50 Cr working capital + Rs. 25 Cr bill discounting) have already been taken from Authum in FY26. Remote e-voting runs from April 2 to May 1, 2026, with results expected by May 5, 2026; the company's Debt-to-Equity ratio would rise from 0.81 to 1.05 post-transaction.
Shareholders should note Nitco's continued and growing reliance on its largest shareholder (Authum) for working capital funding, which increases leverage and ties the company closely to one lender. The 10% interest rate appears market-competitive, but ongoing related-party dependence and the rise in debt-to-equity from 0.81 to 1.05 are points worth tracking before voting.