Enclosed herewith Board Meeting Outcome & Consent Letter to act as Scrutinizer of the Company.
SCANSTL · price
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Scan Steels' Board, at its meeting on April 14, 2025, approved the issuance and allotment of 20,42,133 Optionally Convertible Redeemable Preference Shares (OCRPS) with a face value of Rs. 10 each on a preferential basis. These OCRPS will be issued to existing Non-Convertible Redeemable Preference Shares (NCRPS) holders — Bayanwala Brothers Pvt. Ltd., Gopikar Supply Pvt. Ltd., and Ascon Merchandise Pvt. Ltd. — in lieu of 28,31,139 existing NCRPS, effectively converting their holdings into optionally convertible instruments. A registered valuer's report for the proposed preferential issuance was also noted. The company has initiated a postal ballot process (e-voting from April 15 to May 14, 2025) to seek shareholder approval, with CS Abhijeet Jain appointed as Scrutinizer and CDSL as the e-voting agency.
This is a restructuring of existing preference shareholdings rather than fresh capital raising, so there is no immediate equity dilution unless OCRPS are eventually converted. Existing NCRPS holders gain flexibility to convert into equity, which could dilute common shareholders in the future if conversion is exercised. Shareholders should watch the postal ballot outcome and any future announcements on conversion terms.