Uflex seeks to raise borrowing limit to ₹5,000 crore via postal ballot
- Uflex Limited has issued a Postal Ballot Notice dated September 30, 2026, to seek shareholder approval for increasing borrowing powers
- The proposed limit is ₹5,000 crore, up from the existing ₹4,000 crore authorised via postal ballot on March 24, 2022
- The increase is linked to the construction of a 54,000 MTPA BOPP film line at the Dharwad facility in Karnataka, commenced during FY26 with commissioning expected in FY28
- E-voting is open from October 2, 2026 to October 31, 2026, with results to be declared on or before November 2, 2026
- The resolution requires approval by way of a special resolution under Section 180(1)(c) of the Companies Act, 2013
*this image is generated using AI for illustrative purposes only.
Uflex Limited has issued a Postal Ballot Notice dated September 30, 2026, seeking shareholder approval through a special resolution to increase its borrowing powers from ₹4,000 crore to ₹5,000 crore.
Proposed enhancement of borrowing limit
The company currently operates under a borrowing limit of ₹4,000 crore (Rupees Four Thousand Crore), authorised by members through a special resolution passed via postal ballot on March 24, 2022. The proposed resolution, under Section 180(1)(c) of the Companies Act, 2013, seeks to raise this ceiling to ₹5,000 crore (Rupees Five Thousand Crore only), exclusive of temporary loans obtained from the company's bankers in the ordinary course of business.
The key details of the proposed resolution are summarised below:
| Parameter | Details |
|---|---|
| Existing borrowing limit | ₹4,000 crore |
| Proposed borrowing limit | ₹5,000 crore |
| Resolution type | Special resolution via postal ballot |
| Cut-off date for voting rights | September 25, 2026 |
| E-voting period | October 2, 2026 (9:00 am) to October 31, 2026 (5:00 pm) |
| Result announcement deadline | On or before November 2, 2026 |
| Resolution deemed passed on | October 31, 2026 |
Rationale for the increase
According to the explanatory statement accompanying the notice, the company commenced construction of a new 54,000 MTPA BOPP film line at its Dharwad facility in Karnataka during FY26. The implementation of this project is described as being in full swing, with commissioning expected during FY28. The drawdown of debt during FY27 to achieve timely commissioning will require enhancement of the existing borrowing limit.
The company also stated that it continues to evaluate strategic and technology-driven opportunities in the packaging business, which would require the proposed enhancement to enable timely action on such opportunities. With existing borrowing limits nearing full utilisation, the board has recommended the resolution as being in the best interests of the company.
Voting process and timeline
The e-voting facility is being provided through Central Depository Services (India) Limited (CDSL). Members holding shares in physical or dematerialised form as on the cut-off date of September 25, 2026 are eligible to vote. The voting period runs from October 2, 2026 at 9:00 am to October 31, 2026 at 5:00 pm.
The scrutiny of votes will be conducted by Mr. Mahesh Kumar Gupta, Proprietor, M/s Mahesh Gupta & Co., Practicing Company Secretary, appointed by the board for this purpose. The results will be announced by the Chairman or any authorised director on or before the closing hours of November 2, 2026, and will be communicated to BSE Limited and the National Stock Exchange of India Limited, where the equity shares of the company are listed. Results will also be uploaded on the company's website and on CDSL's e-voting website.
Board recommendation
The board of directors has recommended the special resolution at Item No. 1 of the Postal Ballot Notice for member approval. None of the directors and key managerial personnel of the company and their relatives are stated to be concerned or interested, financially or otherwise, in this resolution, except to the extent of their shareholding in the company, if any. The notice was dated September 30, 2026, and filed with the stock exchanges on October 1, 2026, by Ritesh Chaudhry, Sr. Vice President (Secretarial) and Company Secretary.
Historical Stock Returns for UFLEX
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.22% | -3.07% | +2.44% | +94.36% | +19.85% | +20.14% |
What specific financing instruments or lender syndicates is Uflex Limited expected to leverage for the additional ₹1,000 crore capacity?
How might the commissioning of the new 54,000 MTPA BOPP line in FY28 impact Uflex's market share in the global flexible packaging sector?
What are the projected capital expenditure timelines and debt-to-equity ratio implications for Uflex as it approaches the FY27 drawdown phase?
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