Chandni Machines Limited shareholders approved a significant expansion of the company’s business scope at an Extra Ordinary General Meeting (EGM) held on July 23, 2026. The resolutions altered the Memorandum of Association (MOA) to include manufacturing metal ingots, marine engineering, naval shipbuilding, and chemical trading. This strategic pivot allows the firm to diversify beyond its existing operations into high-growth sectors such as defense and aerospace components. The resolutions received unanimous support from participating investors, enabling management to deploy capital into these new verticals without further shareholder hurdles.

The meeting was chaired by Chairman & Managing Director Jayesh R. Mehta and complied with Ministry of Corporate Affairs (MCA) General Circular No. 03/2025 and SEBI Listing Regulations. The Board had previously considered these alterations in meetings held on June 18, 2026, and June 24, 2026. The voting process was scrutinized by M/s. S P K G & Co. LLP, with Partner Ashutosh Somani serving as the appointed scrutinizer. Remote e-voting commenced on July 20, 2026, at 9:00 a.m. and concluded on July 22, 2026, at 5:00 p.m., facilitated by Purva Shareregistry (India) Private Limited.

New Business Verticals

The approved alterations insert Sub-clauses 5, 6, 7, and 8 under Main Objects Clause III(A) of the MOA, defining four distinct new operational areas:

The marine segment specifically includes technical support services for maritime safety compliance and the integration of specialized military hardware for naval defense specifications. The company also gained the authority to establish docks, graving docks, and slipways for vessel construction and maintenance.

Voting Results Breakdown

Disclosed pursuant to Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, both resolutions were passed with 100% support among votes polled. No votes were cast against either resolution. Out of 4,291 shareholders on the record date of July 16, 2026, only 32 shareholders participated in the remote e-voting process. The promoter group held 14,75,661 shares and cast 14,63,161 votes in favor, accounting for 99.15% of their holdings. Public non-institutional shareholders held 17,51,692 shares but cast only 1,63,303 votes, representing 9.32% of their holdings.

The total votes polled amounted to 16,26,464 out of 32,27,433 total shares outstanding, resulting in a participation rate of approximately 50.39%. Public institutional shareholders, holding 80 shares, did not participate. The low participation from public non-institutional shareholders highlights the concentration of voting power within the promoter group.

Strategic Implications

The approval provides Chandni Machines Limited with greater flexibility in utilizing funds raised through preferential allotments. By varying the objects of the allotment, the company can redirect capital towards new business opportunities such as defense manufacturing or chemical trading that may not have been anticipated during original fundraising. This structural change aligns the company’s legal framework with its evolving business strategy, potentially enhancing operational agility. The unanimous approval indicates strong alignment between the promoters and participating public shareholders regarding this strategic direction.

Chandni Machines has scheduled an Extra-Ordinary General Meeting (EGM) on July 23, 2026, at 3:00 p.m. IST via video conference. Shareholders will vote on the alteration of the Object Clause of the Memorandum of Association (MOA) to facilitate expansion into manufacturing, marine, and chemical trading sectors. The meeting will also seek approval for the variation in the utilisation of unutilised proceeds amounting to ₹29.09 crore raised through a preferential issue.

The Board of Directors approved the insertion of sub-clauses 5, 6, 7, and 8 under the Main Objects Clause on June 18 and June 24, 2026. These alterations aim to diversify business activities amid challenges in the existing second-hand machinery trade due to geopolitical uncertainties and supply chain disruptions.

Strategic Expansion

The proposed alterations to the MOA outline a significant diversification of business activities. The approved objects include:

• Manufacturing: Producing aluminium, zinc, metal ingots, and aerospace engineering components.
• Infrastructure: Establishing manufacturing facilities in Gujarat or other states in India.
• Marine and Shipbuilding: Undertaking repair, maintenance, and engineering services for ships, including naval and defence shipbuilding activities such as constructing warships and patrol boats.
• Chemicals Trading: Dealing in industrial chemicals, petroleum products, lubricants, and related derivatives.

Reallocation of Preferential Issue Proceeds

Shareholders will also consider a special resolution to vary the objects of the preferential allotment made on January 30, 2026. The company raised ₹41.01 crore through the issuance of 38,10,900 equity shares and 40,00,000 convertible warrants at ₹52.50 per share. The issue was undersubscribed compared to the initially approved target of ₹42.97 crore.

The Board proposes to reallocate the unutilised proceeds of ₹29.09 crore. The allocation for 'Investment in subsidiaries and strategic acquisitions' amounting to ₹5.00 crore has been withdrawn. Funds will be redirected towards enhanced working capital requirements and capital expenditure for the new business lines proposed under the MOA alteration.

The Audit Committee reviewed the proposal on June 24, 2026, and recommended the changes as being in the best interest of the company. The facility for remote e-voting and e-voting during the EGM will be provided by Purva Sharegistry (India) Pvt. Ltd.