ACS Technologies Limited has received 'in-principle' approval from BSE Limited for the preferential issue of 49,50,495 equity shares at a price of not less than ₹40.40 per share. The allotment is designated for non-promoter entities and marks a key step in the company's capital raising process.

The exchange issued this approval via letter LOD/PREF/KS/FIP/857/2026-27 dated September 29, 2026. This action complies with Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The shares have a face value of ₹10 each.

Regulatory Conditions and Compliance

BSE emphasized that this approval does not constitute permission for listing. The company must separately apply for listing within twenty days from the date of allotment, as mandated by Schedule XIX of the ICDR Regulations and SEBI circular dated June 21, 2023. Failure to comply will attract penalties under the specified circular.

The exchange advised the company to strengthen internal controls to monitor trades executed by proposed allottees. Specifically, the company must obtain undertakings confirming that allottees will not engage in intra-day trading or sell shares until the allotment date. The onus remains solely on the issuer to verify compliance with Regulation 167(6) of SEBI (ICDR) Regulations, 2018.

Key Issue Details

Any non-compliance observed post-verification may impact the listing of these shares. The company is required to make a listing application without delay with applicable fees, adhering to Regulation 14 of the LODR Regulations.

ACS Technologies has convened its 33rd Annual General Meeting (AGM) for September 30, 2026, seeking shareholder approval for material related-party transactions (RPTs) aggregating up to ₹355 crore. The agenda also includes alterations to the Memorandum of Association to formalise expansion into defence electronics and quantum technologies.

The Board of Directors proposed these resolutions during a meeting held on September 3, 2026. In addition to the special business items, the Board recommended the re-appointment of Mr. Ashok Kumar Buddharaju as Chairman and Managing Director, subject to shareholder ratification.

Related-Party Transaction Approvals

The company is seeking omnibus approvals for transactions with four entities for the period from the 33rd AGM to the 34th AGM. The total exposure represents a significant portion of the company’s consolidated turnover from FY25-26, which stood at ₹17,074.99 lakh.

The largest tranche, valued at ₹200 crore, is with Automicrouas Aerotech Private Limited, a manufacturer of unmanned aerial vehicles where ACS Technologies’ CEO, Dr. MJA Vinoth, serves as a director. The transaction aims to leverage technical synergies in aerotech domains.

IOTIQ Innovations, an IoT and smart technology subsidiary, accounts for ₹100 crore in proposed transactions, primarily involving loans and advances to meet working capital requirements. Innovistas Innovations, another subsidiary focused on IT/ITES, has been allocated ₹50 crore. Sniggy Services, a proprietorship owned by the spouse of the Chairman, has been approved for ₹5 crore, largely for rental and service charges.

Strategic Expansion via MOA Alteration

Shareholders will also vote on altering Clause III(A) of the Memorandum of Association to align with emerging business opportunities:

• Defence Electronics: Existing objects relating to "weapons, munitions, explosive systems" will be replaced with specific language covering the design, development, and maintenance of defence electronics and systems under applicable licenses.
• Quantum Technologies: A new sub-clause will be inserted to permit research, development, and software-based solutions in quantum computing. The company explicitly excludes the manufacture or fabrication of quantum hardware from this scope.

Meeting Logistics and Compliance

The AGM will be conducted through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) starting at 11:30 am IST on September 30, 2026. Remote e-voting opens on September 26, 2026, at 9:00 am and closes on September 29, 2026, at 5:00 pm. The cut-off date for determining voting eligibility is September 24, 2026.

Pursuant to Regulation 36(1)(b) of the SEBI Listing Regulations, the Registrar and Share Transfer Agent, Skyline Financial Services Private Limited, dispatched letters on September 5, 2026, to shareholders without registered email addresses. These communications provide web-links to access the Annual Report for FY25-26 and the AGM notice on the company’s website and the BSE portal.

Mr. VCSR and Associates has been appointed as the scrutinizer for the e-voting process. Shareholders are advised to update their KYC details to ensure eligibility for dividends and voting rights.