Leading Leasing Finance and Investment Company Limited has withdrawn its in-principle approval applications for the conversion of existing loans into equity shares and the issuance of convertible warrants. The decision was taken during a board meeting held on October 5, 2026, effectively cancelling the proposed capital restructuring plans submitted to both BSE Limited and the Metropolitan Stock Exchange of India (MSE).

The company had previously sought approval to convert existing debt into 35,71,42,856 equity shares and issue 70,93,57,119 convertible warrants. The withdrawal applies to the in-principle approvals granted by both exchanges for these specific instruments.

Board Meeting Details

The Board of Directors considered and approved the withdrawal during its meeting on Monday, October 5, 2026. The session commenced at 4:30 pm and concluded at 5:00 pm. The Managing Director, Ketankumar Shivabhai Gosai, signed off on the intimation to the stock exchanges, confirming that the regulatory filings for the proposed conversions have been retracted.

Proposed Capital Structure Changes

The withdrawn proposals involved significant dilution and capital infusion mechanisms through debt conversion. The table below outlines the scale of the cancelled transactions:

The cancellation indicates a shift in the company's immediate capital strategy, moving away from the planned conversion of liabilities into equity instruments as initially proposed to the regulators.

Leading Leasing Finance and Investment Company Limited shareholders approved a significant expansion of the company's capital structure during its 42nd Annual General Meeting held on September 26, 2026. The meeting concluded with the adoption of resolutions to increase authorized share capital and authorize the issuance of convertible warrants and equity shares on a preferential basis.

The AGM, chaired by Managing Director Ketankumar Shivabhai Gosai, was held at the company's registered office in Mumbai. The proceedings included the adoption of financial statements for FY26 and the re-appointment of Mr. Gosai as Managing Director, who retired by rotation and offered himself for re-election.

Capital structure changes

A key resolution passed at the meeting involved increasing the company's authorized share capital from ₹60 crore to ₹164 crore. This substantial increase provides the headroom necessary for the subsequent preferential allotments approved by the shareholders.

The shareholders also approved two specific issuance plans under special resolutions:

• Issuance of up to 35,71,42,856 equity shares on a preferential basis to non-promoter categories upon the conversion of outstanding unsecured loans.
• Issue of 70,93,57,119 convertible warrants on a preferential basis.

Meeting proceedings and voting results

The voting results for the resolutions were conducted through an e-voting facility provided by the company between September 23, 2026, and September 25, 2026. Ballot voting also took place during the physical meeting. The final results are scheduled to be published on the websites of BSE Limited and Metropolitan Stock Exchange of India Limited within two working days of the conclusion of the AGM.

The scrutinizer's consolidated report, submitted by Dharti Patel & Associates on September 29, 2026, confirmed that all five resolutions were passed with requisite majority. Notably, the special resolutions regarding equity share issuance and convertible warrants received support from 96.88% of votes polled, despite opposition from remote e-voters.

What the numbers show

The simultaneous approval of a large convertible warrant issue and equity share conversion suggests a strategic effort to strengthen the balance sheet through debt-to-equity conversion and potential fresh capital infusion. The magnitude of the warrant issue (70.93 crore warrants) significantly exceeds the equity share conversion count (35.71 crore shares), indicating a primary focus on raising new capital via warrants rather than just cleaning up existing liabilities.

Voting patterns reveal a divergence between physical attendees and remote e-voters. While venue voting showed 100% support for all resolutions, remote e-voting saw significant dissent on the special resolutions (approximately 71% against), though the sheer volume of shares voted at the venue ensured passage.