Regency Ceramics Limited has informed the Exchange regarding Notice of Postal Ballot
REGENCERAM · price
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Awaiting price reaction for this filing.
Regency Ceramics has sent a postal ballot notice seeking shareholder approval for two related party transactions with Mrs. Radhika Prasad Narala, a Promoter and Non-Executive Director who holds 18.23% of the company. The first resolution seeks approval to borrow up to Rs. 100 crore (interest-free, unsecured, repayable on demand) from her to meet working capital needs. The second resolution seeks ratification of Rs. 19.91 crore of unsecured loans already availed from her during the current financial year, which exceeded SEBI's materiality threshold. Both transactions represent roughly 761% of the company's annual consolidated turnover, highlighting how small the business is relative to the loans. E-voting runs from February 27 to March 28, 2026, and all related parties (including the promoter group that holds 60.43%) will abstain from voting.
The notice signals that the company is financially stressed and dependent on promoter funding rather than bank loans or capital markets. While the interest-free nature of these loans is favourable for the company, shareholders should note the heavy reliance on a single promoter for survival and the company's continued losses.