CLN Energy seeks nod to raise funds via preferential allotment

CLN Energy Limited has initiated a remote e-voting process to seek shareholder approval for increasing its authorised share capital and issuing up to 2,50,000 equity shares to promoter entity CLN Energy PTE Limited. The preferential issue aims to raise funds primarily to meet the ₹10 crore Foreign Direct Investment (FDI) eligibility requirement necessary for acquiring leasehold land from the Government of Uttar Pradesh for a new manufacturing facility. The voting period commences on June 24, 2026, and concludes on July 23, 2026.

The Board of Directors, at its meeting on June 18, 2026, approved the proposal to increase the authorised share capital from ₹12 crore to ₹12.30 crore by creating 3,00,000 additional equity shares of ₹10 each. Concurrently, the company seeks approval to allot 2,50,000 equity shares at a minimum issue price of ₹401 per share, aggregating to approximately ₹10.02 crore. The proposed allottee, CLN Energy PTE Limited, is a promoter group entity.

The proceeds of the issue are intended to be utilized for acquiring land under the "FDI and Fortune 500 Companies Investment Promotion Policy, Uttar Pradesh: 2023". In the event the land allotment does not materialize, the company plans to allocate 50% of the proceeds towards debt repayment and the remaining 50% for capital expenditure. As of March 31, 2026, the company reported outstanding loans of ₹9327.01 lakhs.

The preferential issue is subject to a special resolution, while the increase in authorised capital requires an ordinary resolution. Mr. Sumit Khanna, Practicing Company Secretary, has been appointed as the scrutinizer to oversee the postal ballot process. The relevant date for determining the floor price of the equity shares is June 23, 2026.

Shareholding Pattern

The preferential allotment will alter the company's shareholding structure, increasing the promoter's stake. The following table outlines the pre and post-issue shareholding pattern:

Category	Pre-Issue Shares	Pre-Issue %	Post-Issue Shares	Post-Issue %
Promoters and Promoters Group	76,61,238	72.60	79,11,238	73.23
Non-Promoters / Public holding	28,92,012	27.40	28,92,012	26.77
Total	1,05,53,250	100.00	1,08,03,250	100.00

Voting Details

Shareholders registered as on the cut-off date of June 19, 2026, are eligible to participate in the remote e-voting process. The facility is available through National Securities Depository Limited (NSDL). The results of the postal ballot, along with the scrutinizer's report, will be announced on or before July 27, 2026, and will be available on the company's website and the BSE website.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.15%	+8.46%	+14.80%	+2.08%	-11.93%	+70.29%

CLN Energy Limited has scheduled a board meeting for June 18, 2026, to consider raising funds through a preferential issue and increasing its authorized share capital. The meeting aims to seek shareholder and regulatory approvals for the issuance of equity shares or warrants, which could impact the company's equity structure. The trading window for designated persons and their immediate relatives has been closed from June 15, 2026, until 48 hours after the board meeting outcome is announced to ensure compliance with insider trading regulations.

Agenda for Board Meeting

The Board of Directors will meet at the company's registered office to transact several key business items. The primary focus is on altering the capital structure and raising capital.

Key Proposals

The board will deliberate on the following matters:

Increase in Authorized Share Capital: The company plans to raise the limit on the number of shares it can legally issue.
Preferential Issue: The directors will consider and approve the issuance of equity shares or warrants on a preferential basis. This will be conducted in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.
Shareholder Approval: The preferential issue is subject to the approval of shareholders and necessary regulatory clearances.

Procedural Approvals

To facilitate the capital raising process, the board will also consider the draft notice for a Postal Ballot or an Extraordinary General Meeting. Additionally, the appointment of a scrutinizer to oversee the voting process will be taken up during the meeting.

Compliance and Trading Window

In line with its Code of Conduct for Regulating, Monitoring and Reporting of Trading by Insiders, the company has shut the trading window. This restriction applies to all designated persons and their immediate relatives, effective from June 15, 2026. The window will remain closed until 48 hours after the outcome of the board meeting is announced to the public.