Praveg Limited shareholders approved three special resolutions at an Extra-Ordinary General Meeting (EGM) held on August 21, 2026. The resolutions cover amendments to existing loan agreements, the issuance of equity shares to the promoter group through the conversion of unsecured inter-corporate loans, and the issuance of warrants convertible into equity shares on a preferential basis.

The meeting was conducted via video conferencing. All three resolutions were passed with overwhelming support from voting shareholders. The promoter group, which holds 12,072,294 shares, voted in favor of all resolutions, casting 100% of its polled votes in support. Public institutional investors held 1,475,777 shares but did not cast any votes.

Voting Results Breakdown

Public non-institutional shareholders, holding 12,592,624 shares, participated actively in the remote e-voting process. They cast 705,517 votes, representing 5.60% of their outstanding shares. The detailed voting outcomes for each resolution are as follows:

The total number of votes polled across all categories was 12,770,311, which constituted 48.85% of the total outstanding shares of 26,140,695. No invalid votes were recorded for any of the resolutions.

What the Numbers Show

The voting data reveals a distinct divergence in participation between shareholder categories. While the promoter group demonstrated near-unanimous support with a 99.94% polling rate of its holdings, public institutional investors recorded 0% participation despite holding approximately 5.6% of the total share capital. This suggests that the approval of these capital structure changes relies heavily on promoter backing and retail/non-institutional public shareholder engagement, rather than institutional investor consensus.

Praveg Limited will hold an Extra-Ordinary General Meeting (EGM) on Friday, August 21, 2026, at 11:30 a.m. IST via Video Conferencing to approve significant capital restructuring measures. The primary agenda includes converting an outstanding unsecured inter-corporate loan of ₹22,92,67,500 from Jhaveri Credits and Capital Limited into equity shares and issuing fully convertible warrants worth ₹30,25,00,000 to promoter group members. These moves aim to optimize the company’s capital structure, reduce debt obligations, and raise additional funds for working capital requirements.

The Board of Directors approved these resolutions in meetings held on July 13, 2026, and July 22, 2026. The loan conversion involves allotting up to 8,33,700 equity shares with a face value of ₹10 each at an issue price of ₹275 per share. This transaction is structured as a set-off against the outstanding loan extended by Jhaveri Credits and Capital Limited, a member of the Promoter Group. The relevant date for pricing determination was Wednesday, July 22, 2026, which is 30 days prior to the scheduled EGM.

In addition to the loan conversion, Praveg Limited proposes a preferential issue of 11,00,000 warrants convertible into equity shares. The warrants are priced at ₹275 each, aggregating to a total issue size of ₹30,25,00,000. The proceeds from this warrant issue are designated for meeting working capital needs, including employee salaries, operational costs, raw material procurement, and other business expenses. The warrant holders will be required to pay 25% of the issue price (₹68.75) at subscription and the remaining 75% (₹206.25) upon exercise of the conversion right within 18 months.

Key Transaction Details

The pricing for both the equity shares and warrants is based on the valuation report dated July 22, 2026, by Mr. Sagar Shah, an Independent Registered Valuer. The minimum price determined under Regulation 164(1) read with Regulation 166A(1) of the SEBI (ICDR) Regulations is ₹266.00 per share. The proposed issue price of ₹275 complies with these regulatory requirements. A pricing certificate was issued by M/s. ALAP & Co. LLP, Practicing Company Secretaries.

What the Numbers Show

The proposed transactions significantly alter the promoter group’s stake in the company without requiring fresh cash outflow for the loan conversion component. By converting ₹22.93 crore of debt into equity, Praveg Limited reduces its interest liability and strengthens its net worth. Simultaneously, the issuance of warrants raises ₹30.25 crore in cash, providing immediate liquidity for working capital. The combined effect increases the promoter group’s shareholding percentage, consolidating control while improving the balance sheet’s debt-to-equity ratio. The lock-in period for the newly allotted shares and warrants will be as per SEBI ICDR Regulations.

Shareholders holding shares as on the cut-off date of Friday, August 14, 2026, are eligible to vote. Remote e-voting will commence on Tuesday, August 18, 2026, at 09:00 a.m. and end on Thursday, August 20, 2026, at 05:00 p.m. M/s. ALAP & Co. LLP has been appointed as the scrutinizer for the e-voting process.