Citichem India Limited (ISIN: INE0A8401016) has announced plans for a significant capital raise through a preferential issue of convertible warrants. The company has scheduled an Extra-ordinary General Meeting (EGM) on December 15, 2025, to seek shareholder approval for this strategic move.

Key Details of the Proposed Warrant Issue

Objectives of the Fund Raise

The company intends to utilize the proceeds for:

1. Working capital requirements
2. General corporate purposes
3. Capital expenditure (Capex)

Impact on Shareholding Pattern

This warrant issue is expected to significantly increase the promoter shareholding in the company.

Financial Position

An analysis of Citichem India's balance sheet reveals some interesting trends:

The company has seen a substantial increase in shareholders' capital over the past year, while maintaining a relatively stable asset base. The reduction in current liabilities suggests improved financial health, although this has been accompanied by a decrease in current assets.

Implications and Outlook

The proposed warrant issue represents a significant move for Citichem India Limited. If approved, it will substantially strengthen the company's capital base and provide funds for growth initiatives. The increased promoter stake could also signal strong confidence in the company's future prospects.

However, shareholders should carefully consider the dilution effect on their holdings, particularly for public shareholders whose overall stake in the company is set to decrease. The company's ability to effectively utilize the raised funds for growth and value creation will be crucial in justifying this capital restructuring.

Investors and stakeholders are advised to review the detailed terms of the warrant issue and consider the company's growth strategy before making investment decisions. The upcoming EGM on December 15, 2025, will be a key event to watch for further developments on this corporate action.

Citichem has secured crucial shareholder approvals at its 33rd Annual General Meeting (AGM) held on September 30, paving the way for significant capital restructuring and fund-raising initiatives.

Key Approvals

Authorized Share Capital Increase

Shareholders have given their nod to increase the company's authorized share capital from Rs 75.00 crore to Rs 125.00 crore. This move is expected to provide Citichem with greater flexibility in its capital structure and future fundraising efforts.

Convertible Warrant Issue

The AGM also approved the issuance of up to 4.7 million convertible warrants at Rs 28.00 per warrant, amounting to a total of Rs 131.60 crore. These warrants will be convertible into equity shares with a face value of Rs 10.00 each.

Warrant Allotment Details

The convertible warrants will be issued on a preferential basis to both promoters and non-promoter entities. The proposed allottees include:

• Arif Esmail Merchant
• Hashim Arif Merchant
• Fozia Arif Merchant
• Saima Hashim Merchant
• Padmakar Jagannath Murodiya

Regulatory Compliance

Citichem has emphasized that both approvals are subject to necessary regulatory clearances. The company has made the required disclosures in compliance with SEBI regulations, including adherence to the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

AGM Proceedings

The AGM, which took place at the Imperial Lounge (NSCI) in Mumbai, also addressed other standard agenda items:

• Adoption of audited financial statements for the year ended March 31
• Re-appointment of Mr. Hashim Arif Merchant (DIN: 03015945) as a director, who was retiring by rotation

The meeting was conducted with both physical presence and remote e-voting options available to shareholders, ensuring wide participation in the decision-making process.

Management Commentary

Arif Esmail Merchant, Managing Director of Citichem, signed off on the regulatory filings, indicating the management's commitment to transparency and compliance with listing obligations.

These strategic decisions signal Citichem's intent to strengthen its financial position and potentially fuel future growth initiatives.