Milkfood Limited shareholders have approved a special resolution to issue convertible warrants on a preferential basis to non-promoter and public category investors. The resolution was passed with overwhelming support at the company’s 1st Extra-ordinary General Meeting (EGM) held on July 27, 2026, clearing the path for the dairy manufacturer to raise capital from external entities without immediate equity dilution.

The voting results, disclosed pursuant to Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, show that 17,586,780 votes were cast in favor of the resolution, representing 99.9986% of the total valid votes polled. Only 239 votes were cast against the proposal. The high approval rate indicates strong shareholder confidence in the company’s capital structure strategy and its plan to attract investment through this instrument.

Voting Breakdown

The EGM saw participation from 10,617 shareholders as of the record date on July 20, 2026. The total shareholding stood at 25,596,180 shares. Voting was conducted through both remote e-voting and physical ballots at the venue.

Promoters held 13,660,096 shares and voted entirely in favor via e-voting. Among public shareholders, institutional holders did not participate in the voting process. Non-institutional public shareholders (Public-Others) held 11,936,084 shares, with 3,926,923 votes polled. Of these, 3,926,684 were in favor and 239 against, resulting in a 99.99% support rate within this segment.

Governance and Scrutiny

Ms. Kamlesh Gupta, a Practicing Company Secretary, was appointed as the scrutinizer for the EGM. Her consolidated report confirms that the voting process adhered to Section 108 of the Companies Act, 2013, Rule 20 of the Companies (Management and Administration) Rules, 2014, and SEBI Listing Regulations. Remote e-voting was facilitated by Central Depository Services (India) Limited (CDSL) and ran from July 24 to July 26, 2026. Physical ballot voting took place at the registered office in Bahadurgarh, Punjab, on July 27.

Mr. Harmesh Mohan Sood, Non-Executive Non-Independent Director, chaired the meeting. Other key attendees included Chairman Anil Girotra, Mrs. Preeti Mathur, Mrs. Namita Swain, and Company Secretary Rakesh Kumar Thakur. Statutory auditors represented by Mr. M K Madan were also present.

What This Means for Shareholders

The approval allows Milkfood Limited to proceed with the preferential allotment of convertible warrants. This mechanism enables the company to raise funds while deferring immediate dilution of existing equity stakes until the warrants are exercised. Investors should monitor future filings for details on the number of warrants issued, conversion prices, and specific allottees. The near-unanimous support suggests minimal resistance to this capital-raising approach among both promoter and public shareholders.

Milkfood Limited has scheduled an Extra-Ordinary General Meeting (EGM) on July 27, 2026, to seek shareholder approval for the preferential allotment of 22,00,000 convertible warrants to the Non-Promoter/Public Category. The company aims to raise ₹6.60 crore through this issuance, which will be used to meet working capital requirements. The warrants are priced at ₹30.00 each, comprising a face value of ₹5 and a premium of ₹25.00.

The Board of Directors approved the proposal in its meeting held on June 30, 2026. The warrants will be allotted to Mr. Sudhir Avasthi, Managing Director, and Mr. Deepankar Barat, President, with each individual eligible for 11,00,000 warrants. The conversion option can be exercised within 18 months from the date of allotment. The "Relevant Date" for determining the issue price is June 25, 2026, which is 30 days prior to the EGM.

The issuance complies with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and the Companies Act, 2013. The price was determined based on a valuation report by independent valuer CA Kapil Dev Dhir, as the shares are infrequently traded. The company has fixed July 20, 2026, as the record date to determine shareholder eligibility for voting.

Pursuant to Section 91 of the Companies Act, 2013 and Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Register of Members and Share Transfer Books will remain closed from July 20, 2026 to July 27, 2026 (both days inclusive) for the purpose of the EGM. The meeting is scheduled to be held at 9.00 a.m. at the registered office of the company at Bahadurgarh, Distt. Patiala, Punjab.

Ms. Kamlesh Gupta, Practicing Company Secretary, has been appointed as the Scrutinizer for the voting process. Remote e-voting will be available from July 24, 2026, at 9.00 a.m. to July 26, 2026, at 5.00 p.m. Upon full conversion, the shareholding of Mr. Sudhir Avasthi will increase to 8.01% and Mr. Deepankar Barat to 6.47% on a fully diluted basis.