Mega Nirman & Industries has withdrawn its application for a proposed rights issue along with the draft letter of offer from BSE Limited. The company announced the withdrawal on September 17, 2026, citing a strategic decision to reconsider the structure of the fundraising.

The board of directors determined that a review of the objects and proposed utilisation of the proceeds was necessary before proceeding. This pause allows the company to reassess the overall terms of the issue.

Strategic Reassessment

The company stated that the withdrawal is part of an inter alia decision to review the proposed utilisation of funds. Management indicated that the board may deliberate on these aspects in due course.

Future steps could include undertaking a rights issue afresh with modifications deemed necessary. Any such action will be subject to applicable laws and regulatory approvals.

Regulatory Disclosure

Company Secretary Kanika Chawla confirmed the intimation to the stock exchange. The company committed to making appropriate disclosures as and when the board takes a final decision regarding the revised fundraising strategy.

This development signals a temporary halt in capital raising plans while management aligns the issue terms with current strategic priorities.

Mega Nirman & Industries shareholders overwhelmingly rejected the reappointment of Executive Director Ramanuj Murlinarayan Darak during its 43rd Annual General Meeting held on August 25, 2026. The resolution failed with 99.96% of votes cast against it, marking a significant governance outcome for the company.

The meeting, chaired by Mr. Ankan Gupta, saw the adoption of audited financial statements for FY26 and alterations to the Articles of Association. While four of the five resolutions passed, the rejection of Mr. Darak’s reappointment stands out as the most contentious item on the agenda. The Consolidated Scrutinizer’s Report, issued by Shiva Nishad of Krishan Rakesh & Co., confirmed these results on August 27, 2026.

Key Resolutions Passed

The shareholders transacted the following items of business:

Mr. Ramanuj Murlinarayan Darak retired by rotation as per regulatory requirements. However, his reappointment was not approved by the members. Only 0.04% of votes were cast in favour of his reappointment. The Board appointed M/S. Krishan Rakesh & Co., Chartered Accountants, as Statutory Auditors for a tenure of five consecutive years.

Governance Updates

The most significant corporate action was the change in Mr. Ankan Gupta’s designation from Executive Director to Chairman cum Managing Director. This move consolidates leadership roles within the company’s top management structure. The resolution received 99.99% support from voting members. Additionally, the alteration of the Articles of Association was approved via a special resolution, allowing for necessary updates to the company’s constitutional documents.

Director Cessation

Following the non-approval of the resolution, the company intimated that Mr. Ramanuj Murlinarayan Darak shall cease to continue as Whole-Time Director with effect from August 25, 2026. The company stated it will take necessary steps to ensure the Board remains duly constituted in accordance with the minimum number of directors required under the Companies Act, 2013.

Voting Process

The Company provided remote e-voting facilities to eligible members from August 22, 2026, to August 24, 2026. Mr. Shiva Nishad, Practicing Chartered Accountant from Krishan Rakesh & Co., served as the Scrutinizer for the voting process. The Chairman informed members that results would be declared within two working days and submitted to stock exchanges.

The auditors’ report contained no qualifications or adverse remarks, in compliance with Section 145 of the Companies Act, 2013. Consequently, the full report was not read out during the proceedings. The meeting concluded at 11:40 am.