STL Networks Limited has announced a favorable resolution to litigation proceedings in the UK, with the High Court of Justice dismissing claims against its subsidiary. The company disclosed this development under Regulation 30 of the SEBI Listing Regulations on April 23, 2026.

Court Dismisses Comex Claim

The High Court of Justice Business and Property Courts in Leeds Technology and Construction Court dismissed the claim filed by Comex 2000 (UK) Limited against Clearcomm Group Limited, a wholly owned step-down subsidiary of STL Networks. The court issued no order as to costs, indicating a complete dismissal of the plaintiff's case.

Settlement Terms and Financial Impact

The legal proceedings concluded with an out-of-court settlement for £25,000 (excluding taxes), representing a significant reduction from the original claim amount of £543,501.07. STL Networks stated that this settlement has no significant financial impact on the company's overall financial position.

Background of the Dispute

The litigation originated from a breach of contract claim filed by Comex 2000 on June 3, 2024. According to STL Networks' previous disclosures, the claim was allegedly filed in retaliation to Clearcomm's £195,000.00 adjudication award. The dispute involved various charges totaling £543,501.07, which Clearcomm disputed through proper legal channels.

Legal Proceedings Timeline

The case involved several procedural developments:

• Clearcomm disputed the initial claim and submitted a counteroffer
• The company attempted to strike out the claim, which was unsuccessful
• Both parties agreed to sample 110 claims for review
• Comex experienced delays in providing required documentation and evidence
• Final bundle of information was eventually supplied and reviewed

Regulatory Compliance

STL Networks made this disclosure pursuant to Regulation 30 read with Para B of Part A of Schedule III of the SEBI Listing Regulations. The company provided comprehensive details in accordance with SEBI Circular No. HO/49/14/14(7)2025-CFDPOD2 / I / 3762 / 2026 dated January 30, 2026, regarding updates on material litigation or disputes.

The successful resolution of this case eliminates a potential financial liability for STL Networks and demonstrates the company's effective legal strategy in defending against disputed claims.

STL Networks Limited has announced the outcome of its Board of Directors meeting held on April 18, 2026, where the board approved significant corporate actions including amendments to the Articles of Association and a preferential issue of convertible warrants. The meeting, which commenced at 6:30 pm and concluded at 7:00 pm, was conducted in compliance with Regulation 30 of the SEBI Listing Regulations.

Articles of Association Amendments

The board approved amendments to the Articles of Association pursuant to Sections 5 and 14 of the Companies Act, 2013. These amendments incorporate specific clauses related to the issuance of non-convertible and convertible securities including convertible warrants, along with clarificatory amendments pertaining to further issue of securities. The changes are subject to shareholder approval and other necessary regulatory approvals.

Convertible Warrants Issue Details

The board approved the creation, issuance, and allotment of up to 4,50,00,000 warrants to Twin Star Overseas Limited, the promoter of the company, through preferential issue on a private placement basis. The key parameters of the issue are:

Shareholding Pattern Changes

The preferential issue will result in changes to the shareholding pattern of Twin Star Overseas Limited:

The post-allotment figures include 4,50,00,000 warrants on a fully diluted basis. Each warrant is convertible into or exchangeable for one fully paid-up equity share of Rs. 2 face value at a premium of Rs. 22 per share. The conversion may be exercised in one or more tranches during the 18-month period. Unexercised warrants will lapse, and the amount paid will stand forfeited.

Regulatory Compliance and Next Steps

The preferential issue is being conducted in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the Companies Act, 2013, and the Foreign Exchange Management Act, 1999. The Notice of Postal Ballot will be circulated to members within the prescribed timeline under applicable provisions of law. Company Secretary and Compliance Officer Meenal Bansal formally communicated the developments to both BSE Limited and the National Stock Exchange of India Limited.