Arcee Industries Limited has secured in-principle approval from BSE Limited to issue 2,15,00,000 equity shares to non-promoters on a preferential basis. The shares, carrying a face value of ₹10 each, will be issued at a price of ₹10.35 per share. This capital raise is intended for the conversion of warrants, as detailed in the regulatory filing submitted on June 02, 2026.

The approval, granted by BSE on June 01, 2026, is subject to the company complying with the provisions of the Companies Act, 2013, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The exchange has clarified that this in-principle approval does not constitute approval for the listing of the securities, for which a separate application is required.

Regulatory Conditions and Compliance

The stock exchange has advised Arcee Industries to strengthen internal controls to monitor trades executed by the proposed allottees. This measure aims to prevent non-compliances regarding trading activities before the allotment date. Specifically, the company must obtain an undertaking from allottees confirming they will not engage in intra-day trading or sell any shares in the company until the allotment date.

The responsibility for verifying this compliance rests solely with the issuer. Any failure to adhere to these regulations, including Regulation 167(6) of the SEBI ICDR Regulations, 2018, could impact the listing of the shares.

Post-Allotment Requirements

Following the allotment of securities, the company is required to submit a listing application without delay, along with the applicable fees, in accordance with Regulation 14 of the LODR Regulations. Furthermore, the company must apply for listing within twenty days from the date of allotment, as mandated by Schedule XIX – Para (2) of the ICDR Regulations and a specific SEBI circular dated June 21, 2023.

Failure to comply with the listing timeline may result in penalties. The exchange reserves the right to withdraw the in-principle approval if any information provided is found to be incomplete, incorrect, or misleading.

Key Details of the Preferential Issue

arcee industries reported a net loss of ₹35.68 lakh for the financial year ended March 31, 2026, widening from a net loss of ₹13.37 lakh in the previous year. The company's total income for the year stood at ₹2.11 lakh, a significant decline from ₹23.19 lakh in FY25. For the quarter ended March 31, 2026, the company recorded a net loss of ₹0.43 lakh on a total income of ₹0.41 lakh.

The Board of Directors approved the audited standalone financial results for the quarter and year ended March 31, 2026, at a meeting held on May 30, 2026. The statutory auditors, M/s. CGH & Associates, issued an audit report with an unmodified opinion on the financial statements. The results were prepared in accordance with the Indian Accounting Standards (Ind AS) and comply with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company published the audited financial results in The Financial Express and Jansatta on May 31, 2026.

Financial Performance

The company's expenses for the year totaled ₹50.40 lakh, down from ₹64.46 lakh in the prior year. Employee benefits expense for FY26 was ₹8.83 lakh, while finance costs amounted to ₹1.39 lakh. Depreciation and amortisation expenses stood at ₹12.39 lakh for the year. Other expenses increased to ₹19.45 lakh from ₹14.45 lakh in the previous year.

Operational Updates

Segment revenue for the year was entirely derived from the Steel Pipe segment, which reported ₹9.90 lakh, down from ₹15.25 lakh in the previous year. The PVC Pipe segment recorded zero revenue for both periods. The company disclosed that its manufacturing unit currently has no production activities. Total assets as of March 31, 2026, stood at ₹517.09 lakh, a decrease from ₹545.96 lakh in the previous year.

Corporate Actions

The board noted that a preferential issue aggregating to ₹22,25,25,000, comprising 2,15,00,000 convertible warrants at an issue price of ₹10.35 per warrant, was approved by shareholders at an Extra-Ordinary General Meeting held on February 21, 2026. However, approval from the Bombay Stock Exchange is still awaited.