Checkpoint Trends Limited Plans Fourfold Increase in Authorized Share Capital, Diversifies into Tobacco and Edible Oils

Checkpoint Trends Limited , a company listed on the Bombay Stock Exchange (BSE: 531099), has announced significant changes to its corporate structure and business focus. The company's Board of Directors has approved a series of strategic decisions aimed at expanding its capital base and diversifying its business operations.

Authorized Share Capital Expansion

The Board has given the green light to increase the company's authorized share capital from Rs. 75.00 crores to Rs. 300.00 crores, subject to shareholder approval. This fourfold increase will expand the number of equity shares from 7.50 crore to 30.00 crore, with each share maintaining a face value of Rs. 10.00.

Business Diversification

In a move to broaden its business horizons, Checkpoint Trends Limited has proposed amendments to its Memorandum of Association. The company plans to venture into two new main business areas:

1. Tobacco-related Trading: The company aims to become a trader, buyer, seller, importer, and exporter of various tobacco products. This includes bidies, cigarettes, cigars, smoking and chewing tobacco, as well as related accessories like match boxes and smokers' requisites.

2. Edible Oils Business: Checkpoint Trends Limited is set to enter the edible oils sector, engaging in trading, processing, refining, blending, and packaging of various types of edible oils and fats. The range includes mustard oil, sunflower oil, soybean oil, groundnut oil, coconut oil, rice bran oil, palm oil, and olive oil, among others.

Shareholder Approval Process

The company has initiated a postal ballot process to seek shareholder approval for these significant changes. Key details of the e-voting process include:

MNB & Co. LLP has been appointed as the scrutinizer for the e-voting process to ensure transparency and fairness.

Management's Perspective

Pradeep Kumar, Whole-time Director of Checkpoint Trends Limited, signed off on the Board meeting outcome. The company views these changes as strategic moves to optimize its resources and capabilities, enhance operational efficiency, and create sustainable value for stakeholders.

The proposed diversification is expected to allow Checkpoint Trends Limited to respond more effectively to emerging market opportunities and improve its competitiveness in the evolving business landscape.

Investors and stakeholders will be keenly watching how these proposed changes, if approved, will impact the company's future growth trajectory and market position.