Outcome of meeting of board of directors pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended ('SEBI LODR Regulations')
Awaiting price reaction for this filing.
The Board of Shri Niwas Leasing & Finance, at its meeting on August 6, 2025, approved convening of the 40th AGM on August 30, 2025 via video conferencing, with the e-voting cut-off date set as August 23, 2025. The Board cleared a massive hike in Authorised Share Capital from ₹44 crore to ₹500 crore, subject to shareholder approval. It also approved a preferential issue of 40 crore equity shares at ₹10 each (totalling ₹400 crore) to four non-promoter entities — Blue Bell Finance, Intellectual Builders, Shanta Agencies, and Twinkle Mercantiles — by converting their existing unsecured loans into equity, with each entity set to hold 22.52% post-issue. Several governance changes were also announced, including the appointment of Mukesh Kumar as the new CFO replacing Moni (who resigned for personal reasons), two new Independent Directors, a new Secretarial Auditor (B Kaushik & Associates), and a new Internal Auditor (Mr. Bharat Bhushan) for five years.
This is a transformational event — the ₹400 crore preferential allotment via loan conversion will dilute existing shareholders dramatically (the four allottees together will own ~90% of the expanded equity), effectively leading to a change in control of the company. While debt-to-equity conversion may strengthen the balance sheet, retail shareholders should brace for steep dilution and closely watch the AGM voting on August 30, 2025.