Ballarpur Industries Limited (BILT) has commenced a postal ballot process to secure shareholder approval for enhancing its overall borrowing limit to ₹2,000 crore. The company also proposes to authorize the Board to grant loans, guarantees, or securities up to ₹1,000 crore to subsidiaries and group entities.

The proposals were approved by the Board of Directors on October 9, 2026, subject to member consent. The move aims to provide the Board with the flexibility to raise financial resources for operational needs and strategic expansion plans. The resolutions cover approvals under Sections 180(1)(a), 180(1)(c), 185, and 186 of the Companies Act, 2013.

Key Proposals for Shareholder Approval

The postal ballot notice outlines four special resolutions requiring a special majority vote:

• Creation of Mortgage or Charge: Approval under Section 180(1)(a) to allow the Board to sell, lease, or create a charge on the company’s assets or undertakings to secure borrowings, provided the aggregate indebtedness does not exceed the limits approved under Section 180(1)(c).
• Overall Borrowing Limit: Approval under Section 180(1)(c) to borrow funds exceeding the aggregate of paid-up capital, free reserves, and securities premium, up to a maximum limit of ₹2,000 crore at any point in time.
• Loans to Related Entities: Approval under Section 185 to advance loans, give guarantees, or provide security to subsidiaries, associates, joint ventures, or entities where directors are interested, up to ₹1,000 crore.
• Investment Limits: Approval under Section 186 to make investments, loans, and guarantees exceeding statutory limits, with an aggregate outstanding amount not exceeding ₹1,000 crore.

Voting Schedule and Process

The company has engaged National Securities Depository Limited (NSDL) to facilitate remote e-voting. Members whose email addresses are registered with the depositories as of the cut-off date will receive the notice electronically.

Voting rights are proportional to shareholders' share in the paid-up equity capital as of the cut-off date. Once a vote is cast, it cannot be modified. The results will be declared within two working days of the conclusion of the e-voting period.

Strategic Implications

The proposed increase in borrowing capacity aligns with Ballarpur Industries’ stated objective to support future business expansion and funding requirements. By securing these limits, the company intends to streamline the process of availing loans from banks, financial institutions, and non-banking finance companies without seeking individual shareholder approval for each transaction, provided they remain within the authorized caps.

The authorization for loans and guarantees up to ₹1,000 crore under Sections 185 and 186 suggests a potential focus on supporting subsidiary operations or strategic investments, allowing the Board and its Investment Committee significant discretion in deploying capital.

Ballarpur Industries Limited passed all six resolutions at its 81st Annual General Meeting held on September 25, 2026, including a special resolution approving the sale of non-core assets, with overall voter participation at 90.11% of outstanding shares.

The meeting was conducted through Video Conferencing / Other Audio-Visual Means (VC/OAVM) in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Chairman Hardik Bharat Patel chaired the proceedings, which commenced at 11:30 am and concluded at 11:56 am. All six directors attended the virtual session. The record date for voting eligibility was September 18, 2026, with 67,150 total shareholders on record.

Key resolutions passed

Shareholders voted on six items, including two special resolutions related to asset disposal and related party transactions. The resolutions covered:

• Adoption of audited financial statements for the year ended March 31, 2026
• Re-appointment of Parashiva Murthy B S (DIN: 00011584) as Non-Executive Director
• Approval for the sale or disposal of non-core assets (Special Resolution)
• Ratification of material related party transactions with Hardik Bharat Patel (Chairman & Whole Time Director)
• Ratification of material related party transactions with Finquest Financial Solutions Private Limited
• Ratification of remuneration to Cost Auditors

Voting participation details

The company utilised remote e-voting facilities provided by National Securities Depositories Limited (NSDL). The voting period ran from September 22, 2026 to September 24, 2026. No members attended in person or through proxies; all participation occurred via video conference.

Resolution-wise voting results

The consolidated scrutinizer's report, issued on September 26, 2026, confirmed all resolutions passed with requisite majority. The table below summarises the vote counts and outcomes for each resolution.

For Resolutions 4 and 5, which involved related party transactions where the promoter group was declared as interested, the promoter group's 28,050,000 votes were classified as invalid and excluded from the valid vote count. Across all other resolutions, the promoter group cast 28,050,000 votes entirely in favour, representing 100% participation on their held shares.

Procedural compliance

CS Viral Sanghavi of M/s. Viral Sanghavi & Associates, Company Secretaries (Membership No. FCS 10331, CP No. 9035), served as the scrutinizer for the votes cast. The scrutinizer was appointed by the Board of Directors on February 13, 2026. The consolidated scrutinizer's report was issued on September 26, 2026, and the votes were unblocked at 12:29 pm on September 25, 2026 after the conclusion of the meeting. The AGM notice dated August 10, 2026 was dispatched electronically to shareholders whose email addresses were registered with the company or depositories. The voting results and scrutinizer's report were submitted to stock exchanges and uploaded on the company's website at www.biltpaper.in .