GTN Industries Limited has scheduled an Extraordinary General Meeting (EGM) on July 6, 2026, to seek shareholder approval for the preferential allotment of 24,59,622 equity shares at a price of ₹24 per share, including a premium of ₹14 per share. The issuance aims to raise ₹5,90,30,928, primarily for the redemption of existing preference shares and general corporate purposes. The board approved the proposal on June 5, 2026, and the company has appointed Ms. Ansu Thomas of M/s. DVM & Associates, LLP, as the scrutinizer for the meeting.

The preferential issue will be made to seven identified investors from the non-promoter group, including Rakesh Kalapala and Atluri Raja Babu, who are slated to receive 6,00,000 shares each. The issuance complies with the SEBI (ICDR) Regulations, 2018, and the Companies Act, 2013. The relevant date for pricing determination is June 5, 2026. The shares will be subject to a lock-in period as specified under the SEBI ICDR Regulations.

Preferential Allotment Details

Key Investors

The EGM will be held at the company's registered office in Chitkul Village, Patancheru Mandal, Telangana. Remote e-voting will be available from July 3, 2026, to July 5, 2026, with the cut-off date for voting rights set as June 29, 2026. P. Prabhakara Rao, Company Secretary and Compliance Officer, signed the regulatory filing.

GTN Industries Limited reported a widened net loss of ₹1,072 lakh for the financial year ended March 31, 2026, compared to a net loss of ₹465 lakh in the previous year, as revenue from operations declined to ₹16,056 lakh. The company's total comprehensive loss for FY26 stood at ₹1,073 lakh, widening from a loss of ₹464 lakh in FY25. The Board of Directors approved the standalone audited financial results for the quarter and year ended March 31, 2026, in a meeting held on May 28, 2026.

The statutory auditors, M/s. Lodha & Co LLP, issued an audit report with an unmodified opinion regarding the financial results submitted pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The financial results include an exceptional item of ₹118 lakh recognized during the quarter ended December 31, 2025, relating to a provision for incremental liability due to the Labour Codes notified by the Government of India.

Financial Performance

For the quarter ended March 31, 2026, the company reported a net loss of ₹491 lakh on a total income of ₹3,813 lakh. In comparison, the net loss for the same quarter in the previous year was ₹160 lakh on a total income of ₹4,075 lakh. Earnings per share (EPS) for the year ended March 31, 2026, was reported at a loss of ₹6.11 per share, compared to a loss of ₹2.65 per share in the prior year.

The company's total assets as at March 31, 2026, stood at ₹12,514.86 lakh, a decrease from ₹13,652.70 lakh in the previous year. Total equity declined to ₹7,267.67 lakh from ₹8,340.48 lakh over the same period. The cash and cash equivalents balance increased to ₹377.38 lakh as of March 31, 2026, from ₹255.89 lakh a year earlier.

Board Decisions and Disclosures

The Board meeting, which commenced at 13:00 P.M. and concluded at 15:40 P.M., also considered the submission of details regarding outstanding qualified borrowings and incremental qualified borrowings. The company confirmed that there were no outstanding qualified borrowings at the start or end of the financial year, nor were there any incremental borrowings or issuances of debt securities during the year.

Furthermore, the Board decided to defer the issue of equity shares on a preferential basis to the next meeting. The company stated that it is primarily engaged in the business of textile products, which is recognized as the sole business segment, and therefore segment-wise information has not been disclosed.