Candour Techtex Limited shareholders have approved a strategic expansion into the Naval & Defence Shipbuilding and Aerospace & Precision Engineering sectors by altering the company's Object Clause. The Special Resolution was passed at an Extra Ordinary General Meeting (EGM) held on July 22, 2026, with 86.58% of votes polled in favor. This constitutional amendment enables the Mumbai-based manufacturer to diversify beyond its existing operations, targeting high-value defense and aerospace contracts while maintaining its current business activities without adverse impact.

The alteration involves inserting two new sub-clauses, numbered 10 and 11, under the Main Objects (Part A of Clause III) of the Memorandum of Association (MOA). Sub-clause 10 authorizes the design, manufacturing, and delivery of naval vessels, warships, submarines, and patrol boats for domestic and international defense authorities. Sub-clause 11 permits the engineering, manufacturing, and supply of aerospace products, precision components, and UAV systems. The changes are effective upon filing with the Registrar of Companies.

The EGM was conducted via video conferencing in compliance with Regulation 30 and Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. M/s. S P K G & Co. LLP, Practicing Chartered Accountant, served as the scrutinizer. Remote e-voting ran from July 18, 2026, to July 21, 2026, with a record date of July 15, 2026. A total of 4,866 shareholders were eligible to vote.

Voting results indicated strong support from public non-institutional shareholders, who cast 4,937,079 votes, compared to 914,388 votes from promoters and the promoter group. The resolutions were transacted under the special business agenda with significant majority approval.

Jayesh Ramniklal Mehta, Managing Director and Chairman, confirmed that all items were approved with the requisite majority. The scrutinizer's report, signed by CA Ashutosh Somani, has been submitted to the stock exchanges. The company stated that the alteration supports long-term growth objectives by facilitating entry into regulated defense and aerospace supply chains.

Candour Techtex Limited will seek shareholder approval to alter its object clause and reallocate unutilized proceeds from a preferential issue at an Extra-Ordinary General Meeting (EGM) on Wednesday, July 22, 2026. The proposed amendments aim to diversify business activities into naval and defense shipbuilding, as well as aerospace engineering and aviation products, addressing challenges in its traditional textile business such as higher tariffs and supply chain disruptions. The company also seeks approval to vary the utilization of ₹102.60 crore in unutilized funds raised through the preferential allotment of equity shares and warrants.

The Board of Directors approved the proposal on June 18, 2026, to amend the Memorandum of Association to facilitate entry into high-growth sectors. The proposed insertion of new clauses will enable the company to undertake business related to naval vessels, warships, and aerospace engineering products. M/s. S P K G & Co. LLP, Chartered Accountants, has been appointed as the Scrutinizer to scrutinize the remote e-voting process and voting at the EGM.

Shareholders will vote on the reallocation of funds raised through a preferential issue. The issue, originally approved to raise ₹198.23 crore, was undersubscribed, with the company actually raising ₹165.34 crore through the allotment of 52,54,700 equity shares and 79,72,600 convertible warrants at ₹125 per share. The revised deployment plan proposes withdrawing the allocation of ₹15.00 crore for investments in subsidiaries and strategic acquisitions, reducing the general corporate purpose allocation by ₹5.00 crore, and increasing the working capital allocation by ₹15.00 crore.

Utilization of Preferential Issue Proceeds

For the financial year ended March 31, 2026, the company reported a net loss of ₹146.89 lakh, reversing the net profit of ₹67.28 lakh recorded in the previous year. Revenue from operations for the year stood at ₹5,812.93 lakh, a decrease from ₹18,810.18 lakh in FY25. The statutory auditors, M/s. Ambavat Jain & Associates LLP, issued an audit report with an unmodified opinion on the standalone financial results. The remote e-voting period commences on July 18, 2026, at 9:00 a.m. and ends on July 21, 2026, at 5:00 p.m.