Universal Cables shareholders approve ₹4,500 crore borrowing limit hike
Universal Cables Limited shareholders approved a special resolution to increase the borrowing limit to ₹4,500 crore and declared a ₹4.50 dividend per share for FY26 at its 81st AGM on August 3, 2026. The meeting also saw the re-appointment of Prem Singh Khamesra as a director, which passed with 64.94% support despite significant dissent from public non-institutional investors.
*this image is generated using AI for illustrative purposes only.
Universal Cables Limited shareholders have approved a special resolution to increase the company’s borrowing capacity to ₹4,500 crore during its 81st Annual General Meeting (AGM) held on August 3, 2026. The Board also declared a dividend of ₹4.50 per equity share for FY26. While the borrowing limit and financial statements received near-unanimous support, the re-appointment of Director Prem Singh Khamesra saw significant dissent from public non-institutional investors, though it passed due to strong promoter backing.
The meeting, held at the registered office in Satna, Madhya Pradesh, was attended by 44 members (6 promoters and 38 public). The quorum was present throughout. Rajesh Kumar Mishra of R.K. Mishra & Associates acted as the Scrutiniser for both remote e-voting and ballot voting. The proceedings complied with the Companies Act, 2013, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Voting Results Breakdown
The consolidated scrutiniser’s report reveals distinct voting patterns across resolutions. The adoption of standalone and consolidated financial statements for FY26, along with the dividend declaration, received overwhelming support with over 99.8% of votes cast in favour. Similarly, the special resolutions to increase the borrowing limit to ₹4,500 crore and create security on assets up to that limit were passed with 99.80% approval.
| Resolution | Description | Votes In Favour (%) | Votes Against (%) |
|---|---|---|---|
| 1 | Adoption of Standalone Financials for FY26 | 99.86% | 0.14% |
| 2 | Adoption of Consolidated Financials for FY26 | 99.86% | 0.14% |
| 3 | Declaration of Dividend of ₹4.50 per share | 99.86% | 0.14% |
| 4 | Re-appointment of Prem Singh Khamesra | 64.94% | 35.06% |
| 5 | Increase in Borrowing Limit to ₹4,500 crore | 99.80% | 0.20% |
| 6 | Creation of Security on Assets | 99.80% | 0.20% |
| 7 | Ratification of Cost Auditor Remuneration | 99.86% | 0.14% |
Key Governance Developments
The re-appointment of Prem Singh Khamesra (DIN: 00049162) as a Director retiring by rotation passed with 64.94% support. However, the voting data highlights a divergence between promoter and public non-institutional shareholders. While promoters voted unanimously in favour, public non-institutional investors cast 3.49% of their polled votes against the resolution. This dissent was concentrated in e-voting, where 6.77% of votes from this category were against, compared to zero against votes in the physical poll.
Financial and Operational Implications
The enhanced borrowing limit empowers the Board to raise funds exceeding the aggregate of paid-up capital, free reserves, and securities premium, provided total outstanding borrowings do not exceed ₹4,500 crore. This includes rupee loans, foreign currency loans, debentures, bonds, and inter-corporate deposits. Concurrently, the Board is authorized to create mortgages, charges, and hypothecations on present and future assets to secure these loans.
The dividend of ₹4.50 per equity share of face value ₹10 will be paid to shareholders recorded on July 27, 2026. Additionally, the remuneration of Messrs D. Sabyasachi & Co., Cost Accountants, was ratified at ₹1,20,000 plus applicable Goods and Services Tax and reimbursement of actual out-of-pocket expenses for FY27.
What the Numbers Show
The voting pattern indicates strong alignment on strategic financial decisions like leverage expansion, which received nearly unanimous backing across all shareholder categories. However, the governance resolution regarding director re-appointment revealed notable friction with retail and non-institutional public investors, who expressed dissent primarily through the remote e-voting channel. This suggests that while the promoter group maintains control, there is active engagement and differing views among public shareholders on board composition.
Historical Stock Returns for Universal Cables
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -3.10% | -1.93% | +10.09% | +130.10% | +118.34% | +824.25% |
How will the newly approved ₹4,500 crore borrowing capacity be strategically allocated to drive Universal Cables' growth in the renewable energy and power transmission sectors?
What specific operational or governance changes might Universal Cables implement to address the dissent from public non-institutional investors regarding the re-appointment of Director Prem Singh Khamesra?
Could the significant leverage expansion impact Universal Cables' credit ratings or cost of capital in the near term?
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