Shareholders of Zenith Drugs Limited have approved the issuance of up to 16,90,050 fully convertible warrants (FCWs) to promoters via private placement. The special resolution was passed at the company’s Extraordinary General Meeting (EGM) held on July 23, 2026, signaling strong promoter confidence and enabling potential equity infusion without immediate cash outflow from the promoters.

The approval was secured under Regulation 44(3) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The voting process was scrutinized by Shubham Jain, Partner at G&J Associates, Practicing Company Secretaries, Jaipur. The e-voting window remained open from July 20, 2026, to July 22, 2026, with the cut-off date for eligibility set on July 16, 2026. Bigshare Services Private Limited facilitated the remote e-voting platform.

Voting Results

The resolution saw overwhelming support from shareholders. A total of 8 members voted in favor, representing 100% of the votes cast in favor, while only 1 member voted against. No invalid or abstained votes were recorded.

The total number of valid votes cast in favor stood at 510,400, while 1,600 votes were cast against the resolution. The combined result includes both remote e-voting conducted prior to the meeting and e-voting performed during the virtual EGM via Video Conferencing/Other Audio-Visual Means (VC/OAVM).

What the Numbers Show

The near-unanimous support for the issuance of fully convertible warrants indicates minimal resistance from minority shareholders regarding the potential dilution or promoter stake enhancement. With 98.90% of valid votes coming from remote e-voting, the engagement was heavily skewed towards institutional or large retail investors who voted ahead of the meeting date. The absence of invalid votes suggests a smooth technical execution of the voting process by Bigshare Services Private Limited.

Zenith Drugs Limited has scheduled an Extraordinary General Meeting (EGM) on July 23, 2026, to seek shareholder approval for the preferential allotment of warrants to promoters. The meeting, to be held via video conferencing at 02:00 PM, aims to raise a maximum amount of ₹6,99,93,675 through the issuance of up to 16,09,050 warrants. This capital raising initiative will increase the total promoter holding from 64.08% to 67.18% upon full conversion of the warrants into equity shares.

The warrants are priced at ₹43.50 each, comprising a face value of ₹10 and a premium of ₹33.50, and are convertible into equity shares within 18 months of allotment. The issuance will be conducted on a private placement basis in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018. The relevant date for pricing determination was June 23, 2026.

Pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has intimated the exchanges regarding the publication of newspaper advertisements for the EGM notice. The advertisements were published in The Times of India (English) and Choutha Sansar (Hindi) to inform members about the meeting and the e-voting process.

The facility for remote e-voting will be available from 09:00 AM on July 20, 2026, until 05:00 PM on July 22, 2026. The cut-off date to determine eligibility for casting votes is July 16, 2026. Shareholders who have not cast their votes remotely and are present at the EGM will be eligible to vote through e-voting during the meeting. The e-voting facility is being provided by Bigshare Services Private Limited.

The board also appointed Mr. Shubham Jain, Partner at G&J Associates, as the scrutinizer for the E-Voting process. The three proposed allottees are all categorized as promoters: Ajay Singh Dassundi, Sandeep Bhardwaj, and Bhupesh Soni. Warrant holders are required to pay 25% of the issue price at the time of subscription, with the remaining 75% payable upon exercise of the warrants.