Shareholders of Mukka Proteins have approved a special resolution to issue warrants convertible into equity shares on a preferential basis, enabling the company to raise capital of up to ₹47 crore. The approval, secured through a postal ballot concluded on July 12, 2026, allows the Board of Directors to allot up to 2 crore warrants at an issue price of ₹23.50 per warrant. This financing structure provides flexibility for future equity conversion while securing immediate funding commitments from non-promoter investors.

The postal ballot process was conducted via remote e-voting from June 13, 2026, to July 12, 2026, with results declared on July 14, 2026. The proposal was initially notified on June 12, 2026, followed by a corrigendum issued on July 6, 2026, after exchanges sought clarifications regarding the preferential issue. Central Depository Services (India) Limited (CDSL) facilitated the e-voting platform, while Chethan Nayak & Associates served as the scrutinizer for the process.

Issue Structure and Terms

The warrant issuance follows specific regulatory frameworks under the Companies Act, 2013, and SEBI ICDR Regulations. Key terms of the issue include:

Warrant holders must pay 25% of the issue price (₹5.875 per warrant) at subscription, which will be adjusted against the final equity share price. The remaining 75% is payable when exercising the warrant. If warrants remain unexercised within 18 months, they lapse and the paid amount is forfeited by the company. The equity shares arising from conversion will rank pari-passu with existing equity shares in all respects, including dividend rights.

Allotment Details

The warrants are being allotted to 15 non-promoter entities and individuals. The allocation reflects diverse investor participation, including individual investors, Hindu Undivided Families (HUFs), and institutional players like Multiplex Capital Limited.

| Proposed Allottee | Category | Warrants Allotted | |---:|:---| | Mr. Irfan Chapra | Non-Promoter | 21,75,000 | | Ms. Reshma Chapra | Non-Promoter | 21,75,000 | | Mr. Vishal Maniar | Non-Promoter | 25,00,000 | | Ms. Payal Maniar | Non-Promoter | 12,00,000 | | Mr. Jasbir Singh Batra | Non-Promoter | 5,00,000 | | Mr. Ranjit Singh Batra | Non-Promoter | 5,00,000 | | Mr. Gurminder Kaur | Non-Promoter | 4,00,000 | | Jasbir Singh And Sons HUF | Non-Promoter | 4,00,000 | | Mr. Sarabdeep Kaur Darshan Singh | Non-Promoter | 4,00,000 | | Ranjit Singh and Sons HUF | Non-Promoter | 4,00,000 | | Multiplex Capital Limited | Non-Promoter | 3,50,000 | | Mr. Hiren Hiralal Shiyal | Non-Promoter | 22,50,000 | | Mr. B A Abdul Nasir | Non-Promoter | 22,50,000 | | Mr. Soofikhan Kalandar Asif | Non-Promoter | 22,50,000 | | Mr. B H Rizwan | Non-Promoter | 22,50,000 |

The floor price for the warrants was determined based on the relevant date of June 12, 2026, as per Regulation 161 of SEBI ICDR Regulations. Allotment must be completed within 15 days of resolution passage, subject to regulatory approvals.

Voting Outcome

The postal ballot received substantial participation from shareholders. Out of 1,30,984 shareholders on the cut-off date of June 10, 2026, 252 members cast votes representing 22,02,62,108 total votes. The resolution passed with overwhelming support:

| Voting Category | Members Voted | Votes Cast | |---:|:---| | Total Votes | 252 | 22,02,62,108 | | Votes in Favour | 218 | 22,01,79,675 | | Votes Against | 34 | 82,433 | | Invalid Votes | - | - |

No shareholder requested modification of votes already cast before the corrigendum issuance. The Chairman, Karkala Shankar Balachandra Rao, declared the resolution passed with requisite majority on July 12, 2026, and results were communicated to stock exchanges and uploaded on the company website on July 14, 2026.

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore Regional Bench, has set aside a customs duty demand of ₹15,24,30,536 against Mukka Proteins Limited , ruling that the Customs Department failed to establish undervaluation with cogent evidence. The final orders, numbered 20934–20937/2026 and dated June 24, 2026, allow all four appeals filed by the company and three other appellants, dismissing the differential customs duty, interest, redemption fines, and penalties imposed by the Commissioner of Customs, Mangalore. This decision resolves a long-standing litigation concerning the valuation of imported fish meal, removing a significant contingent liability from the company’s balance sheet and potentially unlocking cash reserves previously held against the order.

The dispute originated from imports of fish meal undertaken by the company between September 2014 and October 2015 under the Advance Authorisation Scheme. The Customs Department alleged misdeclaration and undervaluation, issuing a Show Cause Notice on December 19, 2017. An initial adjudication order dated July 24, 2019, confirmed the demand for duty, confiscation, redemption fines, and penalties. However, CESTAT set aside this initial order on March 3, 2022, remanding the matter for fresh adjudication. Following the remand, the Commissioner of Customs, Mangalore, issued an Order-in-Original on April 30, 2024, reaffirming the proposals from the original Show Cause Notice, which prompted the current round of appeals.

In its latest ruling, the tribunal held that the demand was not sustainable due to lack of evidence. The order explicitly states that the quantified claim of ₹15,24,30,536, along with unquantified interest and the corresponding interest-linked Section 114A penalty, no longer subsists. The company is entitled to consequential relief in accordance with law. Additionally, the filing notes that the company may be eligible to seek a refund of ₹75,00,000 that had been appropriated under the previous Order-in-Original, subject to applicable statutory procedures.

Key Details of the Litigation Resolution

Mukka Proteins Limited disclosed the receipt of the order to the stock exchanges on August 6, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was made pursuant to SEBI Circular No. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023. The company’s Board of Directors will likely monitor the implementation of the tribunal’s order to ensure the release of appropriated funds and the cessation of any further demands related to this specific period of import.

What the Numbers Show

The resolution of this case eliminates a fixed liability of ₹15.24 crore, which represents a material reduction in the company’s potential outflows. The tribunal’s finding that the department lacked "cogent evidence" suggests a strong legal precedent for the company’s valuation methodology under the Advance Authorisation Scheme. While the primary benefit is the avoidance of the ₹15.24 crore payment, the potential refund of ₹75 lakh provides an immediate, albeit smaller, cash inflow opportunity. The dismissal of the Section 114A penalty is particularly significant, as such penalties are often discretionary and severe; their removal indicates a complete vindication of the company’s position on the merits of the valuation dispute rather than a procedural compromise.