STL Networks clarifies fund utilization for preferential issue

stl networks has clarified the allocation of proceeds from its preferential issue, confirming that 25% of the total funds raised will be utilized for general corporate purposes. This allocation is capped at 25% of the total issue size. The disclosure was made to the stock exchanges on May 29, 2026, in response to a request for clarification regarding the use of funds.

Until the complete utilization of the funds as specified in the objects of the Postal Ballot Notice dated April 18, 2026, the company will invest the proceeds in instruments permitted under applicable laws. These instruments include mutual funds and fixed deposits placed through scheduled commercial banks.

The company submitted this update pursuant to Regulation 30 of the SEBI Listing Regulations, following an earlier communication dated May 14, 2026. The information has been uploaded to the company's official website.

Fund Utilization Details

The following table outlines the key details regarding the utilization and investment of the preferential issue proceeds:

Purpose	Details
General Corporate Purpose	25% of total issue proceeds (capped at 25% of issue size)
Temporary Investment	Mutual funds and fixed deposits via scheduled commercial banks
Reference Document	Postal Ballot Notice dated April 18, 2026

The clarification was signed by Meenal Bansal, Company Secretary and Compliance Officer of STL Networks Limited.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.83%	+17.96%	+3.62%	+26.08%	+35.59%	+35.59%

STL Networks Limited has announced the results of its postal ballot process conducted through remote e-voting, which concluded on May 19, 2026. The company sought shareholder approval for two special resolutions, including the alteration of its Articles of Association and the preferential issuance of warrants to promoter Twin Star Overseas Limited. The resolutions were passed with the requisite majority, as detailed in the scrutinizer's report submitted by CS Debasis Dixit of D Dixit & Associates.

Voting Results Summary

The remote e-voting process was managed by KFin Technologies Limited, with the record date set as April 10, 2026. A total of 230,258 shareholders were eligible to participate. The scrutinizer confirmed that the voting process was conducted fairly and transparently in compliance with the Companies Act, 2013, and SEBI Listing Regulations. Both resolutions received overwhelming support from the shareholders, particularly the promoter group.

Resolution Outcomes

The first resolution, regarding the alteration of the Articles of Association, was approved by 99.98% of the valid votes cast. The second resolution, which authorized the issuance of warrants convertible into equity shares to Twin Star Overseas Limited, was approved by 95.70% of the valid votes cast. The following table details the voting patterns for the key resolution concerning the warrant issuance:

Category	Votes For	Votes Against	% For	% Against
Promoter and Promoter Group	215,427,666	0	100	0
Public-Institutions	10,133,929	10,113,897	50.05	49.95
Public-Non Institutions	1,675,426	101,153	94.31	5.69
Total	227,237,021	10,215,050	95.70	4.30

Background and Compliance

The postal ballot notice was initially dispatched on April 19, 2026. Subsequently, the company issued a corrigendum on May 14, 2026, to update shareholders regarding a revised valuation report. The floor price was maintained at Rs. 23.8 per warrant, with an issue price of Rs. 24 per warrant, determined in accordance with Chapter V of the SEBI ICDR Regulations, 2018. The successful conclusion of this postal ballot allows the company to proceed with the preferential allotment to its promoter.