Vardhman Special Steels Limited has informed the Exchange about outcome of the Extra-Ordinary General Meeting held on June 25, 2025.
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Vardhman Special Steels held an EGM on June 25, 2025, where shareholders approved issuing 1.47 crore equity shares to Japan's Aichi Steel Corporation (ASC) on a preferential basis at ₹260.60 per share, for a total of about ₹384.91 crore. This will raise ASC's stake in the company from 11.33% to 24.90%, making it a major shareholder. The EGM also approved amending the Articles of Association and granting ASC special rights, including the ability to nominate up to two directors and two observers, veto power on certain corporate actions (mergers, liquidation, share issuances below the subscription price), and pre-emptive rights on any new share issuances. As a result, the promoter group's holding will dilute from 60.37% to 51.13%, while the public shareholding will rise to 48.87%.
This is a major strategic capital raise that significantly dilutes the promoter group's stake by about 9 percentage points and brings in a large Japanese partner with meaningful board representation and veto rights. While it strengthens the company's balance sheet and signals ASC's long-term confidence, the special rights granted to ASC may limit the promoter group's flexibility on key business decisions going forward.