Seshachal Technologies Limited has filed the notice for its Extra-Ordinary General Meeting (EGM) scheduled for October 19, 2026. The meeting will seek shareholder approval for a preferential issue of up to 55,000 equity shares at an issue price of ₹76 per share.

The company aims to raise up to ₹41,80,000 through this issuance. The funds are intended to augment long-term working capital requirements and for general corporate purposes. The proposed allottees are two promoters, Ch Narendra and Ch Anitha, who will receive 27,500 shares each.

Shareholding Pattern and Lock-in

The preferential issue represents 7.92% of the pre-issue paid-up equity share capital. Post-issue, the promoter group’s holding will increase from 33.87% (2,35,214 shares) to 38.73% (2,90,214 shares). The public shareholding will decrease from 66.13% to 61.27%, remaining above the minimum requirement under Rule 19A of the Securities Contracts (Regulation) Rules, 1957.

The allotted shares will be locked in for 18 months from the date of trading approval. Additionally, the entire pre-preferential shareholding of the allottees will be locked in from the relevant date until 90 trading days after trading approval.

EGM and Regulatory Approvals

The board approved convening the EGM on October 19, 2026, at 12:00 noon at the registered office in Hyderabad. Shareholders will vote via a special resolution to approve the preferential issue. Remote e-voting will be available from October 16, 2026, to October 18, 2026, with a cut-off date for voting eligibility on October 12, 2026.

CS Himanshu Togadiya has been appointed as the scrutinizer, and Central Depository Services (India) Limited (CDSL) as the e-voting agency. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The issue price of ₹76 is higher than the floor price of ₹75.02 per equity share, determined based on the volume-weighted average price (VWAP) for the 90 trading days preceding the relevant date of September 18, 2026. The equity shares are classified as "frequently traded" on BSE Limited.

Trading Window Status

The trading window for designated persons, which closed on September 16, 2026, will reopen 48 hours after the dissemination of this outcome. The transaction does not trigger an open offer under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as the increase in promoter voting rights is within the 5% limit.

Seshachal Technologies Limited reported a sharp decline in profitability for FY26, with net profit after tax falling 91% to ₹0.16 million (₹1.62 lakh) from ₹1.90 million in the previous year. The drop occurred despite revenue from operations more than doubling to ₹128.53 million from ₹67.40 million.

The company scheduled its 32nd Annual General Meeting (AGM) for September 30, 2026, at 12:00 pm via video conference. Shareholders will vote on the adoption of financial statements and the appointment of Mr. Raj Singh Rawat as Managing Director for five years.

Financial Performance

Revenue growth was driven by increased sales and software support services. However, cost of materials consumed rose significantly to ₹112.67 million, compared to nil in FY25, compressing margins. Employee benefit expenses dropped sharply to ₹5.47 million from ₹63.71 million, while administrative charges increased tenfold to ₹10.01 million.

Balance Sheet Highlights

Total assets decreased to ₹76.66 million from ₹105.35 million, primarily due to a reduction in closing work-in-progress inventory to ₹64.21 million from ₹83.90 million. The company cleared its short-term borrowings of ₹6.23 million, resulting in zero borrowings as on March 31, 2026. Cash and cash equivalents improved to ₹5.17 million from ₹1.24 million.

Corporate Governance

Mr. Prabhaker Reddy Aedla resigned as Managing Director and CFO effective April 23, 2026. Mr. Raj Singh Rawat was appointed as Additional Director designated as Managing Director and CFO on the same date. His formal appointment for a five-year term is subject to shareholder approval at the upcoming AGM. Mr. Manish Kumar Jain resigned as an Independent Director in May 2026.

The Secretarial Audit Report noted that the appointment of Mr. Nilesh Sharma as an Independent Director did not appear to conform to eligibility criteria under Section 149(6)(e) of the Companies Act, 2013, as he was an employee of the company during FY24-25.

Related Party Transactions

The company disclosed arm's length transactions with related parties, including purchases from Think Big Enterprises Private Limited (₹4.68 million) and Flora Corporation Limited (₹66.69 million). Mr. Rajesh Gandhi, a director of Seshachal Technologies, holds directorships in both entities.