Narmada Agrobase alters rights issue objects for loan repayment
Narmada Agrobase Limited has proposed altering the objects of its Rights Issue to use ₹770 lakh for repaying outstanding term loans from State Bank of India. The board approved the variation on 16 Jun 2026 to strengthen the balance sheet, and shareholders will vote via remote e-voting from 30 Jun 2026 to 29 Jul 2026.
*this image is generated using AI for illustrative purposes only.
Narmada Agrobase Limited is seeking shareholder consent to alter the objects of its Rights Issue to facilitate the repayment of outstanding term loans. The board approved the proposal on 16 Jun 2026, aiming to reallocate ₹770 lakh originally earmarked for capital expenditure towards debt reduction. This strategic shift is intended to strengthen the company's balance sheet and reduce interest costs. The variation requires approval through a postal ballot process conducted exclusively via remote e-voting.
The company proposes to utilize the unspent proceeds from the Rights Issue, which raised a total of ₹3,458.15 lakh, to repay borrowings from State Bank of India. While ₹2,688.15 lakh has already been deployed for incremental working capital and general corporate purposes, the remaining balance of ₹770 lakh will now be directed towards loan repayment. The outstanding loan amount to be repaid is ₹908.33 lakh. Notwithstanding this repayment, the company will continue to avail its Cash Credit facility sanctioned by the bank.
Key Details of the Postal Ballot
| Detail | Description |
|---|---|
| Purpose | Alteration in objects of Rights Issue |
| Voting Method | Remote e-voting |
| Voting Period | 30 Jun 2026 to 29 Jul 2026 |
| Scrutinizer | M/s. Punit Santosh Kumar Lath |
| Cut-off Date | 26 Jun 2026 |
The remote e-voting period commences on 30 Jun 2026 at 09:00 A.M. IST and concludes on 29 Jul 2026 at 05:00 P.M. IST. M/s. Punit Santosh Kumar Lath has been appointed as the Scrutinizer to ensure the fairness and transparency of the voting process. The results of the postal ballot will be declared within two working days after the closure of the e-voting period.
Revised Utilisation of Funds
The board has decided to defer the proposed capital expenditure for the acquisition of land, construction of an oil mill plant, and purchase of machinery. Instead, these funds will be used to reduce the company's debt obligations. The proposed varied object of repayment is expected to be achieved on or before 31 Aug 2026.
| Sr. No. | Objects of the Issue as per Letter of Offer | Amount to be utilised (₹ In Lakhs) | Amount utilised till date (₹ In Lakhs) | Balance Amount (₹ In Lakhs) | Revised Objects | Amount to be Utilised (₹ In Lakhs) |
|---|---|---|---|---|---|---|
| 1. | Acquisition of Land, Construction of Oil Mill Plant & other civil works and Purchase of Plant & Machineries | 770.00 | 0.00 | 770.00 | Repayment of the outstanding term loan availed by the Company from State Bank of India | 770.00 |
| 2. | Incremental Working Capital Requirements | 1,787.00 | 1,787.00 | 0.00 | - | - |
| 3. | General Corporate Purpose | 901.15 | 901.15 | 0.00 | - | - |
| Net Proceeds from the issue | 3,458.15 | 2,688.15 | 770.00 | - | 770.00 |
Historical Stock Returns for Narmada Agrobase
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.87% | +4.53% | -4.59% | +30.05% | +56.11% | +164.81% |
How will the deferral of capital expenditure for the new oil mill plant impact Narmada Agrobase's long-term production capacity and growth strategy?
What specific interest cost savings is the company expecting to achieve by repaying ₹770 lakh of the State Bank of India term loan?
With the remaining loan balance of ₹138.33 lakh after this repayment, does the company plan to fully extinguish this debt using internal cash flows?
20
Access 50+ Readymade Screeners 
Use 200+ Custom Filters 
Get Full Market Insights 
