Alka India Limited has disclosed entering into a loan agreement with promoter and director Jatinbhai Ramanbhai Patel for the conversion of quasi equity into equity shares. The agreement, dated February 27, 2026, involves converting Rs. 6.75 crore that was brought by Patel in his capacity as Successful Resolution Applicant into equity shares of the company.

Loan Agreement Details

The loan agreement establishes the framework for converting quasi equity, which was previously approved by the board of directors in their meeting held on May 30, 2025. The conversion will result in the issuance of equity shares at a predetermined price structure.

Fund Receipt Timeline

The company received funds from Patel across multiple tranches between March 2024 and February 2025. The total amount received was Rs. 7.25 crore, with a portion already converted to equity shares.

Out of the total amount received, shares worth Rs. 50,00,000 were already issued on a preferential basis pursuant to a board resolution passed on April 12, 2025. The remaining Rs. 6,75,00,000 forms the basis of the current loan agreement for equity conversion.

Transaction Structure and Compliance

The agreement specifies that the conversion will involve preferential allotment of 45,00,000 equity shares with a face value of Re. 1 each plus a premium of Rs. 14, totaling Rs. 15 per share. Patel currently holds a 5.00% stake in the company as a director.

According to the disclosure, this transaction does not fall within the purview of related party transactions as per the proviso to Regulation 2(1)(zc) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, since it involves acquisition through issuance of specified securities on a preferential basis.

Regulatory Compliance

The company has made this disclosure under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The conversion of quasi equity to equity shares is subject to approval of shareholders in the Annual General Meeting. The agreement does not provide any special rights such as director appointment rights or restrictions on capital structure changes.

Alka India Limited has announced a significant expansion strategy through the acquisition of seven food companies, as approved by its board of directors on February 27, 2026. The comprehensive acquisition plan involves obtaining 100% stakes in companies operating across various agricultural and food segments through share swap agreements.

Major Acquisitions Overview

The company has entered into share purchase agreements for acquiring complete ownership of seven entities, all structured through preferential equity share allotments rather than cash transactions. The acquisitions span diverse food segments including agro products distribution, legumes, pulses, basmati rice, grains, beans, peas, and oilseeds.

Strategic Rationale

The acquisitions are designed to leverage established distribution networks and market presence across Gujarat. Mementos Foods Limited operates with a robust network of dealers and distributors throughout Gujarat, while Kostub Foods Private Limited has developed a network of over 2,000 dealers and distributors for basmati rice distribution in Northern Gujarat.

The target companies offer complementary product portfolios that align with Alka India Limited's existing operations in the agricultural sector. The acquisitions provide immediate access to established value chains and distribution networks, enabling faster market penetration compared to organic growth strategies.

Transaction Structure

All seven acquisitions follow a consistent share swap structure where Alka India Limited will issue equity shares of Re. 1/- face value in exchange for acquiring Rs. 10/- face value shares of the target companies. The total equity shares to be issued across all acquisitions amount to 22,20,37,112 shares.

Regulatory Compliance

The acquisitions have been structured in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transactions are subject to approval from regulatory and statutory authorities, as well as consent from the company's shareholders through special resolutions for preferential equity share issuance.

For three of the acquisitions (Mementos Foods, Satyarath Foods, and Kostub Foods), the promoter group has existing interests as directors and shareholders in the target companies. However, these transactions do not fall within the purview of related party transactions due to the preferential securities issuance structure.

Market Positioning

The acquired companies bring specialized expertise across different agricultural segments. Neurich Nutrifoods Limited focuses on grains with stable year-round demand, while Phycus Nutrifoods Limited operates in the beans segment including red beans, kidney beans, and soybeans. Philimont Nutrifoods Limited specializes in various pea varieties, and Grefos International Private Limited deals primarily in oilseeds.

The strategic acquisitions position Alka India Limited to capitalize on the consistent demand for agricultural products while expanding its geographical footprint and product portfolio across Gujarat's agricultural markets.