Galada Power EGM Unanimously Approves Share Capital Increase to ₹11.75 Crore
Galada Power and Telecommunication Limited's EGM on March 27, 2026 successfully approved major capital restructuring, increasing authorized share capital to ₹11.75 crore and eliminating preference shares. The resolutions received overwhelming shareholder support with 84,21,018 votes in favor, demonstrating strong confidence in the company's strategic direction toward a simplified equity-only capital structure.
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Galada Power and Telecommunication Limited successfully conducted its Extraordinary General Meeting on March 27, 2026, at the company's registered office in Hyderabad. The meeting, chaired by Director Ms. K Ramalakshmi, addressed two critical corporate governance resolutions that received unanimous shareholder approval.
Share Capital Restructuring Approved
The primary resolution involved increasing the company's authorized share capital from ₹11 crore to ₹11.75 crore. The restructuring eliminates the existing preference share component and creates a simplified equity-only capital structure.
| Capital Structure: | Previous | Revised |
|---|---|---|
| Total Authorized Capital: | ₹11.00 crore | ₹11.75 crore |
| Preference Shares: | 10,000 shares (₹100 each) | Eliminated |
| Equity Shares: | 1,09,00,000 shares (₹10 each) | 1,17,50,000 shares (₹10 each) |
| Capital Composition: | Mixed structure | Equity-only structure |
The previous structure included 9.5% cumulative redeemable preference shares with a 12-15 year redemption period, which has been completely removed in favor of additional equity shares.
Voting Results and Shareholder Participation
Both resolutions demonstrated overwhelming shareholder confidence, with the share capital increase resolution receiving 100% approval and the Articles of Association alteration receiving near-unanimous support.
| Resolution Details: | Votes in Favor | Votes Against | Total Participation |
|---|---|---|---|
| Share Capital Increase: | 84,21,018 (100%) | 0 (0%) | 47 members |
| Articles Alteration: | 84,21,018 (100%) | 7 (0%) | 48 members |
| E-voting Participation: | 659 votes | - | 9-10 members |
| Physical Attendance: | 84,20,359 votes | - | 38 members |
Corporate Governance and Compliance
The company utilized NSDL's e-voting platform alongside traditional ballot papers to ensure comprehensive shareholder participation. Scrutinizer S.V. Narayana Charyulu (FCS5981, COP No. 4768) certified the voting process in accordance with Section 108 of the Companies Act, 2013.
V. Subramanian, serving as Vice President and Secretary, digitally signed and submitted the meeting documentation on March 28, 2026. The resolutions authorize the Board to file necessary e-forms with the Ministry of Corporate Affairs and execute all required documentation for implementation.
Strategic Implications
The capital restructuring simplifies Galada Power's shareholding structure by eliminating preference shares and their associated redemption obligations. The new Article 3 of the Articles of Association provides flexibility by linking authorized capital to the Memorandum of Association, enabling future adjustments without extensive documentation changes.
What specific growth initiatives or capital investments is Galada Power planning that necessitated this ₹75 lakh increase in authorized share capital?
How will the elimination of 9.5% cumulative preference shares impact the company's cost of capital and future financing strategy?
Will Galada Power consider issuing the additional 8.5 lakh equity shares through a rights issue, public offering, or strategic investor placement?
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