Sangam (India) Limited shareholders have approved the company’s proposal to issue warrants convertible into equity shares on a preferential basis to promoters and promoter group entities. The special resolution was passed during the Extra-Ordinary General Meeting (EGM) held on August 12, 2026, via Video Conferencing and Other Audio-Visual Means (OAVM). The overwhelming support validates the capital raise strategy detailed in the second corrigendum issued on August 7, 2026, which clarified the utilization of proceeds for manufacturing expansion.

The scrutinizer’s report, submitted by B K Sharma and Associates on August 13, 2026, confirms that the resolution was passed with the requisite majority under Section 108 of the Companies Act, 2013. A total of 131 members voted in favor, casting 34,664,623 valid votes, which accounted for 100% of the total valid votes polled. Only three members voted against the resolution, casting a negligible four votes. No votes were declared invalid or abstained.

Voting Breakdown

The voting data reveals strong backing from the promoter group, which holds a significant stake in the company. Promoters and promoter group entities held 35,431,638 shares as on the record date of August 5, 2026. They polled 34,537,183 votes through e-voting, representing 97.48% of their outstanding shares. All votes cast by the promoter group were in favor of the resolution.

Public shareholders also participated in the e-voting process, which ran from August 8 to August 11, 2026. Public institutions held 6,372,250 shares and polled 107,923 votes (1.69% of outstanding), all in favor. Public non-institutional shareholders held 8,442,671 shares and polled 19,521 votes (0.23% of outstanding). Of these, 19,517 votes were in favor and four were against.

The total number of shareholders on the record date was 10,231. While no shareholders attended the meeting in person or via proxy, 13 promoters and 84 public shareholders attended via video conferencing. The high participation rate from promoters, combined with the unanimous support from institutional investors, underscores confidence in the company’s expansion plans.

Fund Utilization and Compliance

The approved warrant issuance involves issuing 18,00,000 warrants to promoters at an issue price of ₹555.56 per warrant, raising a total of ₹10,00,08,000 (₹100.08 crore). As per the second corrigendum to the EGM notice, the funds are earmarked for setting up additional manufacturing capacities in cotton yarn, open-end yarn, recycled polyester fibre, denim fabric, and garment manufacturing.

The allocation of proceeds is structured as follows:

• Civil Construction: ₹25.00 crore (25%)
• Plant & Machinery: ₹60.00 crore (60%)
• General Corporate Purposes: ₹15.00 crore (15%)

All funds must be utilized by March 31, 2029. Brickwork Ratings India Private Limited has been appointed as the monitoring agency to ensure quarterly compliance with SEBI regulations. Until utilized, the proceeds will be kept in Fixed Deposit Receipts (FDRs).

The EGM was conducted in compliance with Regulation 44(3) of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015. The voting results and scrutinizer’s report are hosted on the company’s website and the Central Depository Services (India) Limited (CDSL) e-voting platform.

Sangam (India) Limited has issued a corrigendum to the notice of its Extra-Ordinary General Meeting (EGM), scheduled for August 12, 2026, to incorporate additional disclosures regarding a proposed preferential issue of warrants. The amendment, submitted on July 31, 2026, responds to information requests from the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) dated July 27, 2026, ensuring compliance with regulatory requirements before shareholders vote on the matter.

The company proposes to raise an aggregate amount of up to ₹100,00,08,000 (Rupees One Hundred Crores and Eight Thousand Only) through the preferential issue of 18,00,000 warrants convertible into equity shares at an issue price of ₹555.56 per warrant. The funds are intended to finance capital expenditure for expansion, modernization, and technology upgradation of manufacturing facilities, including cotton yarn, open-end yarn, recycled polyester fibre, denim fabric, and garment manufacturing units.

Allocation of Proceeds

The proceeds from the warrant issue will be utilized across three primary categories, with implementation expected to be completed by March 31, 2029. Capital expenditure constitutes the largest share of the allocation, aimed at civil construction and the purchase of plant and machinery.

Working capital requirements will not be met directly from the issue proceeds but will be financed through bank facilities such as working capital term loans or cash credits upon commencement of commercial production. The company intends to keep unutilized issue proceeds in Fixed Deposit Receipts (FDRs) until deployment.

Promoter Subscription and Shareholding Impact

The entire preferential issue is subscribed by promoters and promoter group entities. There will be no public subscription component. The allotment details are as follows:

Mrs. Krippie Soni, spouse of Managing Director Anurag Soni, is classified as a promoter under Regulation 2(pp) of the SEBI (ICDR) Regulations, 2018, despite currently holding no shares in the company. The filing confirms that there shall be no change in the management or control of Sangam (India) Limited consequent to this issue.

Monitoring and Compliance

Brickwork Ratings India Private Limited has been appointed as the Monitoring Agency to oversee the utilization of proceeds and submit quarterly reports to the stock exchanges. A Practicing Company Secretary’s certificate from Brij Kishore Sharma of B K Sharma and Associates confirms that the warrant issue complies with the SEBI ICDR Regulations. The corrigendum forms an integral part of the EGM notice and must be read in conjunction with the original notice circulated on July 18, 2026.