Balkrishna Paper Mills Limited announced that its preference shareholders have approved the Scheme of Reduction of Share Capital at an Extra-Ordinary General Meeting (EGM) held on June 19, 2026. The resolution was passed unanimously with a special majority, subject to the approval of the National Company Law Tribunal (NCLT).

The EGM was convened at the company's registered office in Mumbai, with Shri Ankit Poddar elected as the Chairman. All preference shareholders participated through the remote e-voting facility provided by National Securities Depository Limited (NSDL), which was open from June 16 to June 18, 2026. The company received resolutions representing 1,10,00,000 preference shares, accounting for 100% of the paid-up preference share capital.

Voting Results

The resolution secured 100% of the votes polled, with no votes cast against the proposal. The scrutinizer's report confirmed that the resolution was passed unanimously across all nine series of unlisted preference shares.

Procedural Details

Shri Prasen Naithani of P. Naithani & Associates, Practicing Company Secretaries, served as the scrutinizer for the e-voting process. The notice for the EGM was delivered by hand delivery on June 8, 2026, and the meeting was held with shorter notice based on the written consent of all preference shareholders. The detailed voting results and scrutinizer's report will be available on the company's website.

Balkrishna Paper Mills Limited has scheduled a remote e-voting process from June 3 to July 2, 2026, to seek shareholder approval for a scheme of reduction of share capital and several material related party transactions. The proposal aims to address the company's accumulated losses, which stood at ₹2,78,39,19,643 as per the limited review financial statements for the quarter ended September 30, 2025, and to reorganize its capital structure.

Scheme of Reduction of Share Capital

The Board of Directors has proposed a scheme to reduce the issued, subscribed and paid-up equity share capital by lowering the face value of 3,22,19,532 equity shares from ₹10 each to ₹1 each. This reduction will adjust accumulated losses first against the Securities Premium Reserve of ₹23,28,61,241 and then against the paid-up equity share capital. Furthermore, the entire issued preference share capital of ₹1,10,00,00,000, comprising 1,10,00,000 6.5% Non-Cumulative Redeemable Preference Shares, will be cancelled and extinguished. The consideration payable to preference shareholders will be treated as an unsecured non-interest bearing loan in the company's books until adequate funds become available for discharge.

The table below outlines the financial impact of the proposed adjustments:

Material Related Party Transactions

Shareholders will also vote on ordinary resolutions to approve material related party transactions. The company seeks approval to enter into transactions with Futuristic Concepts Media LLP, Sanchna Trading and Finance Limited, S P Finance and Trading Limited, Poddar Bio Diesel Private Limited, and Wavelink Fabrics LLP regarding the reduction of preference share capital.

Additionally, the company proposes to avail Inter Corporate Deposits (ICDs) from S P Finance and Trading Limited and Sanchna Trading and Finance Limited. The company seeks approval for ICDs up to ₹25 crore for FY 2026-27 and up to ₹25 crore for FY 2027-28 from each entity, in one or more tranches, at an interest rate of up to 12% per annum. These transactions are deemed material as the company's turnover for FY 2024-25 was ₹2.32 crore, and the proposed limits exceed the 10% materiality threshold.

Voting Process and Timelines

The remote e-voting period commences at 9:00 a.m. IST on June 3, 2026, and concludes at 5:00 p.m. IST on July 2, 2026. The cut-off date to determine shareholder eligibility is May 22, 2026. The results of the postal ballot are expected to be declared on or before July 4, 2026. Mr. Prasen Naithani, Practicing Company Secretary, has been appointed as the scrutinizer to conduct the process. The scheme requires approval from the National Company Law Tribunal and other regulatory authorities to become effective.