Vinyl Chemicals declares ₹7 dividend, re-appoints Managing Director
Vinyl Chemicals (India) Ltd. declared a dividend of ₹7 per share for FY26 at its 40th AGM, absorbing ₹12.84 crore from profits. Shareholders re-appointed Shri M.B. Parekh as Managing Director for five years from April 1, 2027, and approved related party transactions with Pidilite Industries up to ₹1300 Crores.
*this image is generated using AI for illustrative purposes only.
Vinyl Chemicals (India) Ltd. has declared a dividend of ₹7 per equity share for the financial year ended March 31, 2026, absorbing ₹12,83,59,777 from the current year's profit. Shareholders approved the payout at the 40th Annual General Meeting held on June 5, 2026. The company also secured shareholder approval to re-appoint Shri M.B. Parekh as Managing Director for a further period of five years starting April 1, 2027.
The meeting, conducted via video conferencing, saw the approval of seven resolutions. Shri M.B. Parekh’s re-appointment includes terms where his total remuneration shall not exceed 5% of the net profit of the financial year or limits permissible under Schedule V of the Companies Act, 2013. He will serve as a non-rotational Director and Key Managerial Personnel during his term.
Shareholders also sanctioned material related party transactions with Pidilite Industries Limited, the promoter company. The approval covers the sale of goods and materials for an aggregate value not exceeding ₹1300 Crores. This authorization is valid from April 1, 2026, until the conclusion of the Annual General Meeting for the financial year ending March 31, 2027.
The board received approval to pay commission to Non-Executive Directors, excluding the Managing Director and Whole-time Directors. This commission, capped at 1% per annum of net profits calculated under Sections 197 and 198 of the Companies Act, 2013, will be distributed for five years commencing April 1, 2027.
Shri P. D. Shah was re-appointed as an Independent Director for a second term of five consecutive years from October 6, 2026, to October 5, 2031. Additionally, Shri N. K. Parekh was re-appointed as a Director liable to retire by rotation. The remote e-voting and electronic voting results indicated that all resolutions were passed with the requisite majority.
Voting Results Summary
| Resolution Description | Votes For | % For | Votes Against | % Against | Result |
|---|---|---|---|---|---|
| Adoption of Audited Financial Statements FY26 | 90,32,861 | 99.99 | 5 | 0.01 | Approved |
| Declaration of Dividend | 90,32,866 | 100.00 | 0 | 0.00 | Approved |
| Re-appointment of Shri N. K. Parekh (Director) | 90,30,961 | 99.98 | 1,905 | 0.02 | Approved |
| Related Party Transactions with Pidilite Industries | 2,01,728 | 99.06 | 1,905 | 0.94 | Approved |
| Re-appointment of Shri M. B. Parekh (MD) | 90,30,961 | 99.98 | 1,905 | 0.02 | Approved |
| Commission to Non-Executive Directors | 90,30,961 | 99.98 | 1,905 | 0.02 | Approved |
| Re-appointment of Shri P. D. Shah (Independent Director) | 90,32,861 | 99.99 | 5 | 0.01 | Approved |
Historical Stock Returns for Vinyl Chemicals
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.76% | +3.75% | -5.30% | +5.98% | -14.57% | +77.40% |
How will the ₹1300 Crore limit on related party transactions with Pidilite Industries impact Vinyl Chemicals' revenue growth and operational autonomy in the coming fiscal year?
What strategic shifts or expansion plans does the re-appointment of Shri M.B. Parekh signal for the company's long-term direction?
Will the increased remuneration structure for Non-Executive Directors affect the company's ability to attract and retain high-quality independent governance talent?
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