Kernex Microsystems shareholders have approved key governance changes, including an increase in the Board’s borrowing powers and the creation of charges on company assets, following a postal ballot that concluded on July 29, 2026. The resolutions empower the management to secure additional funding and leverage company assets for financial flexibility. Shareholders also endorsed remuneration increases for three senior executives and the appointment of a new director, signaling continued support for the current leadership structure.

The voting process was conducted in compliance with Regulations 30 and 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and Section 110 of the Companies Act, 2013. D. S. Rao, a practicing Company Secretary, served as the independent scrutinizer for the e-voting process facilitated by National Securities Depository Limited (NSDL). The record date for voting eligibility was June 26, 2026, with 43,096 shareholders registered at the cutoff.

All seven resolutions were passed with significant majority support. The special resolution to increase the borrowing powers of the Board of Directors received 99.84% affirmative votes, with only 7,936 shares voted against out of 5,072,484 polled. Similarly, the resolution to create a charge or provide security on company assets secured 99.75% approval, facing dissent from just 12,883 shares. These outcomes reflect strong shareholder confidence in the company’s capital strategy.

The ballot also included three special resolutions to increase the managerial remuneration of Whole-Time Directors M B Narayana Raju and M Sitarama Raju, and Managing Director Sreelakshmi Manthena. Each of these resolutions garnered approximately 98.75% support. Additionally, shareholders approved the appointment of Parvathi Manthena as a director with 98.94% assent. An ordinary resolution approving a related party transaction regarding the holding of office by General Manager (Operations) Alluri Sitarama Raju Manthena passed with 99.69% support.

Voting Dynamics and Compliance

Promoter and promoter group shareholders, holding 4,717,361 shares, participated heavily in the vote, casting 4,715,329 votes in favor of all resolutions without any dissent. Public institutional investors showed varied engagement, particularly on remuneration hikes, where they recorded higher dissent rates compared to non-institutional public shareholders. For instance, in the remuneration resolutions, public institutions voted against at rates between 16.39% and 17.90%, whereas non-institutional public shareholders opposed these measures at lower margins.

The scrutinizer’s report confirmed that the e-voting process was fair and transparent. Notably, in the related party transaction resolution, 15,000 votes cast by Mr. Badari Narayana Raju Manthena were excluded as he was identified as a related party. Furthermore, Mr. M B Narayana Raju’s votes were not considered in favor of his own remuneration hike due to his interest in the resolution. The results were published on the company website and NSDL’s e-voting portal on July 31, 2026.

Kernex Microsystems (India) Ltd has secured an order worth ₹100.53 crore from Integral Coach Factory (ICF) for the supply and installation of KAVACH equipment. The contract involves the supply, installation, interfacing with electrics of trainset, testing, and commissioning of on-board KAVACH Equipment as per RDSO Specification No. RDSO/SPN/196/2020, Version 4.0 or latest Trainset, including warranty and CAMC. This order is to be executed domestically and must be completed on or before March 31, 2028.

Contract Details

The following table outlines the key parameters of the order awarded:

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that the promoter, promoter group, or group companies have no interest in the entity awarding the order.