Uttam Sugar Mills Limited has informed the Exchange regarding Notice of Postal Ballot in respect of seeking consent of the holders of 6.50% Non-Cumulative Redeemable Preference Shares and 10.00% Non-Cumulative Redeemable Preference Shares of the company by way of Special resolution.
UTTAMSUGAR · price
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Awaiting price reaction for this filing.
Uttam Sugar Mills is asking its preference shareholders to approve pushing back the redemption of two series of preference shares by three years, from 31st March 2026 to 31st March 2029. The first series carries a 6.50% dividend (issued between 2009-2011 at Rs. 100 per share) and the second carries 10.00% dividend (issued 2011-2014 at Rs. 200 per share including Rs. 100 premium). The company says the extension is needed due to its 'present cash flow position, future capex and budgeting.' Voting runs from 17th February 2026 to 18th March 2026, and the result will be announced on or before 20th March 2026. Managing Director Raj Kumar Adlakha is interested in the resolution as a director/promoter of entities holding these preference shares.
This signals potential cash flow or liquidity pressure on the company, as it needs extra time to redeem obligations due within weeks. Common equity investors may see this negatively, while preference shareholders face a 3-year delay in getting their money back, with no change in dividend terms.