Sarda Energy & Minerals received board approval to incorporate a step-down wholly owned subsidiary in Dubai. The new entity will focus on trading and distributing the company's products in the Middle East, with an initial investment of up to ₹3 crore.

Board approval and investment details

The board of Sarda Energy & Minerals greenlit the formation of the new entity in Dubai, marking the company's move to establish a direct operational foothold in the Middle East region. The subsidiary will be a wholly owned entity of Sarda Metals & Alloys Ltd., making it a step-down wholly owned subsidiary of the parent company. The initial investment sanctioned for the subsidiary stands at up to ₹3 crore.

The key details of the board-approved decision are outlined below:

Strategic intent and operational scope

The incorporation of a wholly owned subsidiary in Dubai reflects Sarda Energy & Minerals' intent to grow its footprint in the Middle East market. The Dubai entity will function as a fully owned arm of Sarda Metals & Alloys Ltd., enabling it to pursue business opportunities in the region under a dedicated corporate structure.

The primary objective of the new entity is the trading and distribution or selling of the company's products in the Middle East. This move is designed to leverage global market opportunities and expand the company's business footprints in the region. The transaction does not currently fall within related party transactions, but once incorporated, transactions with the parent entities will be conducted on an arm's length basis.

Sarda Energy & Minerals secured shareholder approval to raise funds via redeemable non-convertible debentures (NCDs) aggregating ₹1,000 crore. The authorization allows the company to issue these debt securities in one or more tranches over the next year through private placement or public issue.

The resolution was passed during the 53rd Annual General Meeting held on September 24, 2026. The board is authorized to determine terms including tenor, interest rate, and currency, which may be Indian rupees or foreign denominations. This borrowing capacity operates within limits previously approved by members under Section 180(1)(c) of the Companies Act, 2013.

Shareholders approved a dividend of ₹2 per equity share, representing 200% of the face value of ₹1 each. The payout for FY26 will be distributed to shareholders whose names appear on the register of members as per the record date, subject to tax deduction at source.

Voting outcomes

All six resolutions proposed at the meeting were passed with the requisite majority. The adoption of financial statements and dividend declaration received near-unanimous support, while the re-appointment of Director Anant Sarda saw some opposition.

What the Numbers Show

While most resolutions passed with over 99.99% approval, the re-election of Director Anant Sarda recorded significantly lower support at 96.97%. Approximately 3.03% of valid votes were cast against this resolution, amounting to over 7.3 million shares, indicating notable dissent compared to the other items on the agenda.