Jayant Infratech has withdrawn its proposed preferential issue of up to 12,55,000 equity shares, effectively halting the planned acquisition of M/s. Jayant Infraprojects. The company’s Board of Directors approved the withdrawal during a meeting held on July 27, 2026, at its registered office in Bilaspur. This decision terminates the Business Transfer Agreement dated April 27, 2026, which had outlined the acquisition of the business undertaking as a going concern through a slump sale.

The preferential issue was originally structured for consideration other than cash, with shares to be allotted to members of M/s. Jayant Infraprojects, an Association of Persons. Shareholders had previously approved this issue at an Extraordinary General Meeting held on May 27, 2026. The company had submitted an application for in-principle approval to BSE Limited, which remains under process. By withdrawing the issue, Jayant Infratech aims to restructure the transaction rather than proceed with the current terms.

Key Details of the Withdrawal

The Board noted that the Business Transfer Agreement could no longer be implemented consequent to the withdrawal of the share issuance. The agreement is terminated with immediate effect or such other date as mutually agreed by the parties. Nilesh Jobanputra, Managing Director, authorized the Company Secretary and Whole-time Director to execute all necessary documents to formalize the termination.

Impact on Operations

Management clarified that the withdrawal will not adversely impact the company’s financial position, operations, or growth prospects. The decision is purely strategic, aimed at restructuring the deal mechanics rather than abandoning the underlying business interest entirely. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

What the Numbers Show

The withdrawal of a non-cash consideration deal indicates a shift in negotiation strategy or valuation alignment between the two entities. Since no cash outflow was involved in the original proposal, the immediate financial impact on Jayant Infratech’s balance sheet is neutral. However, the restructuring implies that future capital allocation strategies may differ from the initial equity-swap model, potentially affecting dilution metrics if a revised plan involves different instruments or pricing.

Jayant Infratech Limited has secured a significant contract from West Central Railway for the execution of Railway Overhead Electrification (OHE) works, valued at ₹13,31,88,572.19. The project, awarded through a Letter of Acceptance, encompasses the design, supply, erection, testing, and commissioning of OHE in the Itarsi-Jhujharpur section. This includes power supply arrangements, modifications to existing OHE, and associated general services in connection with the Itarsi-Nagpur 3rd line work. The contract is expected to contribute to the company's revenue and operational growth.

The disclosure was made to BSE Limited on July 07, 2026, in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that the decision to disclose these details was voluntary, adhering to the principles of good corporate governance and its Policy on Materiality of Events and Information. The announcement aligns with SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023.

Contract Details

The order is a domestic contract awarded by West Central Railway. The scope of work is strictly defined as Railway Overhead Electrification (OHE) Works. The company confirmed that the order does not fall within related party transactions and that promoter or promoter group companies have no interest in the entity awarding the contract.

The project must be executed within a period of nine months from the date of issuance of the Letter of Acceptance, with the completion target set for April, 2027. The total contract value is inclusive of all duties and taxes.