the Board of Directors of Classic Filaments Limited has convened a meeting of its Board of Directors for consideration and approval of agendas mentioned in the annexed file.
Awaiting price reaction for this filing.
Classic Filaments Limited's Board approved multiple key proposals on May 15, 2026. The board recommended appointment of Mr. Vikkas Bansal as Chairman and Managing Director and regularization of four directors including three Independent Directors. The company also approved issuance of 47,17,740 equity shares at Rs. 51.50 per share via preferential allotment to 53 non-promoter investors, raising approximately Rs. 24.3 crore. Additionally, the board approved acquisition of 51% stake in Procasts Engineering Private Limited (approx. Rs. 12 crore) and 75% stake in Solven Power Systems Private Limited (approx. Rs. 2 crore). Both acquisitions are related party transactions as promoters are common. The company also plans to enter IT sector by opening a new division and increase borrowing limits to Rs. 100 crores.
This is a highly dilutive event for existing shareholders with ~47 lakh new shares being issued. The acquisitions and preferential allotment suggest the company is actively expanding and diversifying its business, though significant share dilution may pressure the stock price near-term.