ARSS Infrastructure Projects Limited has secured Board approval for a ₹250 crore private placement of non-cumulative non-convertible redeemable preference shares (NCRPS) to its promoter, Ocean Capital Market Limited. The transaction, approved on July 23, 2026, is structured to deliver an internal rate of return (IRR) of 12% per annum through a redemption premium rather than regular dividends. This move strengthens the company’s balance sheet with substantial promoter funding while avoiding immediate cash outflow obligations associated with traditional debt instruments.

The issuance falls under Regulation 23 of the SEBI Listing Regulations for related party transactions and requires shareholder ratification via postal ballot. Concurrently, the Board increased the authorized share capital from ₹110 crore to ₹500 crore, comprising ₹230 crore in equity shares and ₹270 crore in preference shares. An independent valuation report dated July 23, 2026, was obtained from CA Prithvi Ranjan Parhi, Registered Valuer – Securities, confirming the fair value of the transaction.

Key Details of the Preference Share Issue

The company plans to issue up to 25 crore preference shares with a face value of ₹10 each. Although the stated dividend rate is minimal at 0.01% per annum, the instrument is designed to provide an effective return of 12% per annum to the investor upon redemption after a tenure of 22 months from the date of allotment.

The allotment will occur in one or more tranches as decided by the Board after receiving shareholder approval. The preference shares are unsecured and do not carry any charge on the company’s assets but hold preferential rights over equity shares regarding dividend payment and capital repayment in accordance with the Companies Act, 2013.

Corporate Governance Updates

In addition to the fundraising proposal, the Board appointed Rajendra Biswal (Membership No.: A76448) as the Company Secretary and Compliance Officer, effective July 23, 2026. Biswal, an Associate Member of the Institute of Company Secretaries of India, brings experience in corporate governance, regulatory liaison with SEBI and stock exchanges, and compliance management systems. His appointment aims to strengthen the company’s secretarial and legal compliance framework.

What the Numbers Show

The structure of this financing highlights a strategic approach to promoter funding. By offering a nominal 0.01% dividend but guaranteeing a 12% IRR through redemption premium, ARSS Infrastructure minimizes immediate cash outflow obligations while securing ₹250 crore in long-term capital. This contrasts with traditional debt instruments that may require periodic interest payments. The reliance on a single promoter for this entire tranche indicates strong internal confidence and support, reducing dilution risks for existing public shareholders while strengthening the balance sheet ahead of potential project expansions.

Shareholder Voting Timeline

Shareholders must act within the specified timeline to approve these resolutions. The cut-off date for determining voting rights is July 24, 2026. Remote e-voting commences on July 31, 2026, and concludes on August 29, 2026. The scrutinizer’s consolidated report will be submitted to the Chairman by August 31, 2026.

ARSS Infrastructure Projects Limited has secured a contract worth ₹51.60 crore from East Coast Railway, adding a significant order to its existing project portfolio.

Contract Details

The following table summarizes the key details of the awarded contract:

Order Win Highlights

Key highlights of this development include:

• Client: East Coast Railway
• Contract Value: ₹51.60 crore
• Sector: Railway infrastructure

This contract from East Coast Railway underscores ARSS Infrastructure's continued presence in the railway construction and infrastructure development space. The order adds to the company's ongoing project engagements within the Indian railway sector.