Bonlon Industries Ltd has secured in-principle approval from both BSE Limited and the National Stock Exchange of India (NSE) for its proposed rights issue. The capital raise is estimated at ₹49.75 crore through the issuance of fully paid-up equity shares with a face value of ₹10 each.

The approvals were granted on September 24, 2026, following the company's application dated August 17, 2026. The exchanges have permitted Bonlon Industries to use their names in the Letter of Offer for the rights issue, subject to strict compliance with regulatory disclaimers and listing formalities.

Terms of the proposed rights issue

The company plans to issue equity shares to eligible shareholders on a rights basis. While specific ratios and prices remain to be finalized in the offer document, the aggregate size of the issue is capped at ₹49.75 crore. The shares will be issued at a price including a premium over the face value.

Regulatory conditions and compliance

Both exchanges have stipulated that the in-principle approval is subject to the company fulfilling several post-issue requirements. Bonlon Industries must file the listing application promptly after allotment and ensure receipt of all statutory approvals from authorities such as SEBI, RBI, and MCA.

Key conditions include:

• Compliance with all guidelines under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• Adherence to the Companies Act, 2013, particularly regarding related party transactions and investments.
• Procurement of a certificate from the Secretarial Auditor confirming Overseas Direct Investment (ODI) compliance before filing the listing application.
• Confirmation that the Letter of Offer and composite application form have been posted to enable trading in renunciation letters.

Disclaimer obligations

The exchanges emphasized that their permission does not constitute an endorsement of the correctness or completeness of the contents of the Letter of Offer. Investors are advised to conduct independent inquiry and analysis. The company must print specific disclaimer clauses provided by BSE and NSE in all advertisements and the offer document itself.

Bonlon Industries is responsible for all disclosures made in the offer documents. Any non-disclosure, suppression, or misstatement of information will be the sole responsibility of the company. The exchanges reserve the right to withdraw approval if submitted information is found to be incomplete, incorrect, or misleading.

Bonlon Industries will hold its 29th Annual General Meeting (AGM) on September 29, 2026, to seek shareholder approval for increasing authorized share capital from ₹35 crore to ₹50 crore. The meeting will also address director remuneration and related-party transactions.

The board held its meeting on September 4, 2026, to approve the AGM notice. The company plans to conduct the meeting through Video Conferencing or Other Audio-Visual Means, as permitted by regulatory circulars. Remote e-voting will be available from September 26, 2026, at 9:00 am to September 28, 2026, at 5:00 pm.

Capital Restructuring Details

The proposed increase involves adding 1.5 crore equity shares with a face value of ₹10 each. This raises the total number of equity shares from 3.5 crore to 5 crore. The amendment requires changes to Clause V of the Memorandum of Association.

The capital hike facilitates future equity issuances, including the conversion of pending warrants and a proposed right issue of ₹49.75 crore approved by the board in August 2026.

Director Remuneration and Re-appointment

Shareholders will vote on the re-appointment of Mr. Arun Kumar Jain as Managing Director and approve his remuneration structure. His current appointment ends on September 28, 2028. The proposed maximum annual remuneration is ₹1 crore, covering salary, allowances, and perquisites such as medical insurance and travel.

The agenda also includes approving the remuneration for Mr. Rajat Jain, Whole Time Director, up to ₹50 lakh per annum. His appointment ends on February 13, 2029.

Related-Party Transactions

The company seeks approval for material related-party transactions with four entities until the next AGM in 2027. The aggregate value cap is ₹600 crore, distributed as follows:

• Asier Metals Private Limited: ₹300 crore
• Bon Lon Private Limited: ₹100 crore
• Bon-Lon Securities Limited: ₹100 crore
• Harshit Finvest Private Limited: ₹100 crore

These transactions involve trading of ferrous and non-ferrous metals, job work, services, and short-term working capital funding. Mr. Arun Kumar Jain and Mrs. Smita Jain have interests in these related parties.

Financial Performance Context

The explanatory statement highlights financial results for FY26 compared to FY25. Revenue grew to ₹6,511.8 crore from ₹6,231.0 crore. Net profit increased to ₹303.6 crore from ₹269.0 crore.

AGM Logistics

The cut-off date for determining shareholder eligibility is August 28, 2026. The register of members and share transfer books will remain closed from September 24, 2026, to September 29, 2026. Mr. Sanjeev Dabas, a practicing company secretary, was appointed as the scrutinizer for e-voting.