KMEW seeks approval for ₹800 crore related party transactions
Knowledge Marine & Engineering Works has initiated a postal ballot to seek shareholder approval for related party transactions worth ₹800 crore with its subsidiary Knowledge Shipyard Private Limited for FY 26-27. The agenda includes ratification of past RPTs worth ₹35 crore and an increase in investment, loan, and guarantee limits to ₹500 crore.
*this image is generated using AI for illustrative purposes only.
Knowledge Marine & Engineering Works has initiated a postal ballot process to seek shareholder approval for related party transactions (RPTs) with its subsidiary, Knowledge Shipyard Private Limited, worth an aggregate value of ₹800 crore for FY 26-27. The transactions involve the construction and supply of vessels, including GTTP compliant green tugs, and providing guarantees, loans, or investments to the subsidiary. The company is also seeking approval to increase the limits for investments, loans, and guarantees under Section 186 of the Companies Act, 2013, from ₹75 crore to ₹500 crore.
The proposed RPTs with Knowledge Shipyard Private Limited include repairs of existing vessels and support in the construction of port ancillary crafts valued at ₹500 crore, alongside providing guarantees, security, loans, or investments worth ₹300 crore. These transactions are intended to be executed at arm’s length and in the ordinary course of business. The Board of Directors and Audit Committee have approved these proposals, which are now subject to shareholder ratification via special resolution.
Shareholders as on the cut-off date of May 29, 2026, are eligible to vote on these resolutions. The company has engaged MUFG Intime India Private Limited to facilitate the remote e-voting process. The voting period commences at 9.00 a.m. IST on Wednesday, June 03, 2026, and concludes at 5.00 p.m. IST on Thursday, July 02, 2026. The results of the postal ballot will be announced on or before Monday, July 06, 2026.
Key Agenda Items
The postal ballot notice outlines three special resolutions for shareholder consideration. The first item seeks approval and ratification for material RPTs entered into during FY 25-26, amounting to ₹35 crore. The second item requests omnibus approval for future RPTs with the subsidiary up to ₹800 crore for FY 26-27. The third item proposes an increase in the limits for investments, loans, and guarantees to ₹500 crore.
Transaction Details
| Particulars | FY 25-26 (₹ in Crores) | FY 26-27 (Proposed) (₹ in Crores) |
|---|---|---|
| Construction and Fabrication | 17.00 | 500.00 |
| Advance against Tug Delivery | 18.00 | - |
| Guarantee, Loan, or Investment | - | 300.00 |
| Total | 35.00 | 800.00 |
The explanatory statement notes that the subsidiary, Knowledge Shipyard Private Limited, reported a turnover of ₹28.47 crore and a profit after tax of ₹2.34 crore in FY 2025-26. The company states that the transactions are designed to harness group synergies and enhance operational efficiency without compromising independence.
Historical Stock Returns for Knowledge Marine & Engineering Works
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.12% | -12.18% | +1.76% | +24.48% | +131.99% | +70.55% |
What is the expected impact of the ₹500 crore capital expenditure on Knowledge Marine's debt-to-equity ratio and overall financial leverage?
How will the company secure the necessary funding to support the increased loan and guarantee limits of ₹500 crore under Section 186?
What is the projected revenue contribution from the new GTTP compliant green tugs to the parent company's top line over the next fiscal year?
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