Baroda Extrusion Limited has made significant moves in its capital structure and board composition, as revealed in a recent board meeting outcome.

Equity Share Allotment

The company's board has approved the allotment of a total of 4,53,33,316 equity shares through two separate routes:

1. Conversion of Unsecured Loans: 2,42,42,424 equity shares were allotted through the conversion of unsecured loans.
2. Preferential Allotment: 2,10,90,892 equity shares were allotted on a cash basis at Rs. 8.25 per share through preferential allotment.

These allotments were made following shareholder approval obtained in an Extra Ordinary General Meeting held on 02-05-2025 and in-principle approval from BSE Limited.

Breakdown of Share Allotment

The majority of shares from the loan conversion, specifically 2,42,42,424 shares, were allotted to promoter Parasmal Kanugo. The remaining shares were distributed among 35 non-promoter investors. Here's a breakdown of some notable allotments:

Board Changes and Appointments

The board meeting also saw several key decisions regarding the company's leadership:

1. New Independent Director: Ms. Suryasnata Mishra has been appointed as an Independent Director for a 5-year term, from August 28, 2025, to August 28, 2030, subject to shareholder approval.

2. Secretarial Auditors: M/s. Swati Bhatt & Co., Practicing Company Secretaries, have been appointed as the Secretarial Auditors of the company.

3. Director Resignation: Ms. Rina Patel has resigned from her position as a Director of the company, effective August 28, 2025.

These developments mark significant changes in Baroda Extrusion Limited's capital structure and governance.

Baroda Extrusion Limited , a manufacturer of copper tubes and bars, has reported a significant increase in profitability for the first quarter of fiscal year 2026. The company's financial results, approved by its Board of Directors on August 13, 2025, reveal a robust performance amid challenges.

Financial Highlights

• Net profit for Q1 FY2026 stood at ₹88.18 lakh, compared to ₹14.23 lakh in the same period last year, marking a substantial year-over-year growth.
• Revenue from operations increased to ₹3,805.93 lakh from ₹3,306.15 lakh in the corresponding quarter, reflecting a 15.12% rise.
• The company's earnings per share (EPS) for the quarter improved to ₹0.06, up from ₹0.01 in Q1 FY2025.

Operational Performance

Baroda Extrusion's improved financial results can be attributed to higher sales and better operational efficiency. The company managed to control its expenses effectively, with total expenses increasing by only 12.94% year-over-year, compared to the 15.12% growth in revenue.

Capital Infusion Plans

In a significant development, Baroda Extrusion has announced plans for a preferential equity issue worth ₹37.40 crore. This strategic move comprises:

• Conversion of unsecured loans amounting to ₹20.00 crore into equity
• Fresh fund infusion of ₹17.40 crore

The company has filed an application with the Bombay Stock Exchange (BSE) for approval of this preferential issue, which is expected to strengthen its financial position.

Auditor's Observations

The company's statutory auditors, Maloo Bhatt & Co., have issued a qualified opinion on the financial results, highlighting two key concerns:

1. Unappropriated customer advances of ₹44.65 lakh exceeding 365 days, which contravenes Section 73 of the Companies Act, 2013.
2. Continuation of Deferred Tax Assets (DTA) worth ₹292.62 lakh despite negative net worth and past losses.

Future Outlook

Despite the current negative net worth, Baroda Extrusion's management remains optimistic about future prospects. The company has prepared business projections considering global copper market demand and implemented strategic changes to address key issues such as capacity utilization and identifying high-margin buyers.

Corporate Governance

The Board of Directors has scheduled the 34th Annual General Meeting for September 30, 2025, and approved the Directors' Report. This demonstrates the company's commitment to maintaining transparency and adhering to corporate governance norms.

In conclusion, while Baroda Extrusion Limited shows signs of financial improvement with its increased profitability and revenue growth, the planned equity infusion and resolution of auditor concerns will be crucial for its sustained recovery and growth in the coming quarters.