Eraaya Lifespaces Limited has issued a corrigendum to its Extra-Ordinary General Meeting (EGM) notice on June 04, 2026, to incorporate additional disclosures regarding a proposed preferential issue of securities and related party transactions. The company seeks shareholder approval for these items at the EGM scheduled for June 08, 2026. The update provides specific details on valuation, fund utilization, and the rationale for transactions with related parties, including subsidiaries and entities under the Ebix group.

Preferential Issue Valuation and Objects

The company has obtained a valuation report from Mr. Manish Manwani, an independent Registered Valuer, determining the price for the preferential issue at ₹31.53 per equity share. This valuation supports the issuance of equity shares for consideration other than cash and the issuance of up to 3,12,41,250 Fully Convertible Warrants on a preferential basis to promoter and non-promoter categories. A compliance certificate from M/s. Prachi Bansal & Associates, Practicing Company Secretary, has also been obtained confirming adherence to Chapter V of the SEBI ICDR Regulations.

Utilization of Issue Proceeds

Eraaya Lifespaces intends to utilize the proceeds from the preferential issue of warrants totaling ₹99.97 crore across specific objects by March 31, 2028. The deployment of funds is contingent upon 100% conversion of the warrants into equity shares within the stipulated time. As the issue size is less than ₹100 crore, the company is not required to appoint a credit rating agency as a monitoring agency under Regulation 162A of the SEBI ICDR Regulations.

Related Party Transactions

The company is seeking approval for material related party transactions with subsidiaries and step-down subsidiaries operating under the Ebix group, including entities such as Ebix Technologies Limited, EbixCash World Money Limited, and Ebix Inc. These transactions involve operational, financial, and commercial support, including inter-corporate deposits, loans, and shared services. The Audit Committee and the Board of Directors reviewed and approved these transactions on May 11, 2026, determining them to be commercially beneficial and in the interest of the company.

Transactions with Vikas Lifecare Limited and Advik Capital Limited, entities sharing the same promoter group, are also proposed for approval. These relate to financial and business support transactions received during the acquisition of Ebix group businesses. The proposed transactions for the financial year 2026-27 are considered material relative to the company's annual consolidated turnover, with specific percentages disclosed for each related party.

Eraaya Lifespaces Limited has been impleaded as a defendant in a civil suit filed by a public shareholder concerning allegations of coordinated voting on company resolutions. The suit, bearing No. Civ/DJ 527/26, was filed before the District Judge (West District) at Tis Hazari Courts, New Delhi. The plaintiff contends that certain shareholders acted in a coordinated manner regarding the exercise of voting rights on resolutions related to governance, compliance, and corporate decision-making without required disclosures.

The proceedings raise issues regarding shareholder rights, compliance with the company's constitutional documents, and the impact of coordinated voting on the approval of resolutions requiring higher shareholder thresholds. The company stated that the matters are presently sub judice and relate to the existence of commonality of conduct and voting patterns. Eraaya Lifespaces has been named as Defendant No. 1 in the proceedings.

In an order dated June 1, 2026, the Hon'ble Court did not grant any ad-interim ex-parte relief and listed the matter for further proceedings. The court observed that if any company meeting is convened during the pendency of the proceedings, all shareholders are expected to act in the larger interest of the company and in compliance with the Memorandum and Articles of Association.

The company confirmed that no relief has been sought against it and no adverse order has been passed. Eraaya Lifespaces disclosed that there is no violation or contravention alleged against it in the suit. Consequently, the company reported that there is no adverse impact on its business operations, financials, or other activities, and operations continue in the ordinary course.

Eraaya Lifespaces stated it will continue to fully comply with the proceedings and any directions of the court. The company intends to take all appropriate steps available in law to safeguard its interests and those of its shareholders and other stakeholders.