Precision Wires India Limited has informed the Exchange regarding Notice of Extraordinary General Meeting to be held on Jun 17, 2025
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Precision Wires India has issued a corrigendum to its EGM notice (originally dated May 17, 2025), with the EGM now scheduled for June 17, 2025 via video conferencing. The corrigendum was filed after BSE and NSE sought additional disclosures and corrections. Key business items include: (1) Preferential issue of 13,83,000 equity shares at Rs. 151 per share (about Rs. 20.88 crore total) to three non-promoter entities — Saraswati Commercials India (10 lakh shares), Sapientia Holdings LLP (3 lakh shares), and Trishakti Power Holding (83,000 shares); (2) Preferential issue of 27,67,000 convertible warrants at Rs. 151 each (about Rs. 41.78 crore total) to the same three investors, with 25% payable upfront and 75% on conversion within six months — together raising up to roughly Rs. 62.66 crore; (3) Re-appointment of Deepak Mehta as Vice Chairman & Whole Time Director for 3 years (Aug 2025–Jul 2028); (4) Re-appointment of Nirbhay D. Mehta as President for 3 years; (5) Revision of Milan Mehta's (CMD) pay by replacing commission with a variable annual pay up to 1.5% of net profits; and (6) Hiking the overall managerial remuneration ceiling from 11% to 15% of net profits.
Existing shareholders will see dilution if the preferential allotments go through, since shares and warrants are being issued to a small group of non-promoter investors at Rs. 151 per share. The raised funds (potentially around Rs. 62.66 crore) could support growth, but investors should also note the proposed increase in top management remuneration limits and re-appointments of promoter-group directors, which may affect future profit distribution to shareholders.