Leo Dryfruits & Spices Trading has re-appointed Ketan Sobhagchand Shah as Whole-time Director and Chief Financial Officer for a five-year term. The board approved a significant increase in his annual remuneration to ₹18,00,000, up from ₹12,00,000.

The decision was taken during the board meeting held on August 27, 2026. The re-appointment is subject to approval by members at the ensuing Annual General Meeting.

Key Terms of Appointment

The revised remuneration package includes salary, perquisites, allowances, and benefits. It becomes effective from April 1, 2026. The tenure runs from September 1, 2026, to August 31, 2031.

Governance and Compliance

The company confirmed that the revised amount shall be payable as minimum remuneration if profits are absent or inadequate in any financial year during his tenure. This provision aligns with Schedule V of the Companies Act, 2013.

Ketan Sobhagchand Shah holds 20,45,050 equity shares, representing 11.43% of the company’s total share capital. He is the brother of Kaushik Sobhagchand Shah, the Chairman and Managing Director.

Profile and Expertise

Shah has been associated with the company since January 25, 2022. His expertise covers management, domestic sourcing, customer relationships, retail segment growth, and administration. He holds a Bachelor of Commerce degree.

Leo Dryfruits & Spices Trading has scheduled its Extraordinary General Meeting (EGM) for September 4, 2026, to secure shareholder approval for a preferential issue of Fully Convertible Warrants (FCWs) worth up to ₹38,50,00,000. The capital raise aims to fund working capital needs, business expansion, and strategic investments without altering the company's management control. Shareholders holding equity as of the August 28, 2026 cut-off date can exercise remote e-voting from September 1 to September 3, 2026.

The Board of Directors approved the issuance during its meeting on August 8, 2026, under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company submitted the EGM notice to BSE Limited on August 12, 2026. The meeting will be conducted via Video Conferencing (VC) or Other Audio Visual Means (OAVM), with National Securities Depository Limited (NSDL) facilitating the e-voting process. Voting rights are determined by shareholding on the record date of August 28, 2026.

The issue comprises 70 lakh warrants at an issue price of ₹55 per warrant, determined based on a relevant date of August 5, 2026. This price exceeds the floor price of ₹53.1025, calculated as the 10-day volume-weighted average price (VWAP). Each warrant converts into one equity share with a face value of ₹10. Investors must pay 25% of the issue price at subscription, with the remaining 75% due upon conversion within 18 months. Unexercised warrants will lapse, and the upfront amount will be forfeited.

Promoters Kaushik Sobhagchand Shah and Ketan Sobhagchand Shah are subscribing to 12 lakh warrants each. Non-promoter investors, including Shree Ram Realities and Jignesh Jaswantrai Mehta, constitute the majority of the allotment. The equity shares arising from conversion will rank pari passu with existing shares and be subject to lock-in provisions under Chapter V of the SEBI ICDR Regulations. The company must complete allotment within 15 days of the special resolution or within extended periods permitted by regulators.

What the Numbers Show

The proposed issuance represents a significant capital infusion relative to the company’s current equity base. With pre-issue promoter holdings at 38.11%, the post-conversion stake is projected to dilute slightly to 37.04%, while public holding increases from 61.89% to 62.96%. This structure ensures no change in management control, aligning with SEBI takeover regulations. The issue price premium over the floor price suggests investor confidence in the company’s valuation, while the staggered payment terms (25% upfront, 75% on conversion) provide liquidity flexibility for subscribers while securing committed capital for Leo Dryfruits & Spices Trading.