Padam Cotton Yarns Limited board approved a rights issue of up to ₹27 crore on September 10, 2026. The move aims to raise capital through equity shares offered to existing shareholders.

The board also decided to relocate the company's corporate office within Ahmedabad.

Rights Issue Details

The board authorized the issuance and allotment of equity shares with a face value of Re. 1 each. The aggregate amount for the issue is capped at ₹27 crore. Eligible equity shareholders as on the record date, to be notified subsequently, will be able to participate in the issue.

The issuance is subject to receipt of regulatory and statutory approvals. It will be conducted in accordance with Section 62(1)(a) of the Companies Act, 2013 and the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Corporate Office Shift

Padam Cotton Yarns Limited will shift its corporate office from Unit No. C-801 on the 8th Floor of Krish Cubical in Thaltej to 118, Sun Gravitas on the 1st Floor near Shyamal Bridge in Satellite, Ahmedabad. The books of accounts will be maintained at the new location.

Padam Cotton Yarns has scheduled its 32nd Annual General Meeting (AGM) for September 30, 2026. The meeting will seek shareholder approval for a significant increase in authorized share capital and the appointment of a new independent director.

The company’s board approved increasing its authorized share capital from ₹22 crore to ₹49 crore on September 5, 2026. This move aims to facilitate future equity fundraising. The detailed disclosure follows Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Capital Restructuring Details

The board resolved to amend Clause V of the Memorandum of Association. The current authorized capital stands at ₹22 crore, divided into 22 crore equity shares of ₹1 each. The proposed increase raises this limit to ₹49 crore, comprising 49 crore equity shares of ₹1 each. These new shares will rank pari-passu with existing equity shares.

This alteration requires approval from members under Section 13 and Section 61 of the Companies Act, 2013. The explanatory statement notes that the increase is intended to broaden the capital structure and meet future funding requirements via equity issuance.

Auditor Appointment

Piyush Kothari & Associates, a peer-reviewed partnership firm based in Ahmedabad, was appointed as the statutory auditor. This appointment fills a casual vacancy left by the resignation of SVJK & Associates on July 27, 2026. SVJK cited commercially non-viable professional fees as the reason for resignation.

The effective date of appointment is July 27, 2026, for the fiscal year 2026-27. Shareholders must approve this appointment at the upcoming annual general meeting. The firm will serve a four-year term starting from the conclusion of the AGM, covering FY27 to FY31. The proposed statutory audit fees shall not exceed ₹6.10 lakh per annum, plus out-of-pocket expenses.

New Independent Director

The AGM will also consider the appointment of Mr. Dharmesh Mithabhai Patel as an independent director. He was initially appointed as an additional director on August 14, 2026, pursuant to Section 161 of the Companies Act, 2013.

Mr. Patel holds a Bachelor of Commerce degree from Gujarat University and has nine years of experience as a tax consultant. He currently serves as a director in Mafia Trends Limited, where he chairs the Audit Committee and the Nomination & Remuneration Committee. He does not hold any shares in Padam Cotton Yarns. His appointment is for a five-year term, ending August 13, 2031, and he will not be liable to retire by rotation.

AGM Schedule

The company will convene its 32nd Annual General Meeting on September 30, 2026, at 12:00 pm. The meeting will be held at the registered office in Karnal.

E-voting will commence on September 27, 2026, at 9:00 am and conclude on September 29, 2026, at 5:00 pm. Members holding shares as of the cut-off date, September 23, 2026, are eligible to vote electronically. Mr. Ashish Goyal has been appointed as the scrutinizer for the e-voting process.