Citichem India Limited has officially withdrawn its proposed preferential issue of convertible warrants, marking the end of a fund-raising initiative that had received both board and shareholder approval. The company communicated this decision to BSE Limited on January 21, 2026, citing adverse market conditions and regulatory challenges as key factors.

Timeline of the Proposed Issue

The fund-raising proposal followed a structured approval process over several months. The Board of Directors initially approved the preferential issue of convertible warrants on November 14, 2025, subject to obtaining requisite approvals including in-principle approval from BSE Limited. Subsequently, shareholders provided their consent at an Extraordinary General Meeting held on December 15, 2025.

Reasons for Withdrawal

Citichem India Limited cited multiple factors contributing to the decision to abandon the preferential issue:

• Prevailing adverse market conditions
• Continued market volatility
• Failure to receive in-principle approval from BSE Limited
• Overall unfavorable environment for fund-raising activities

The company emphasized that the combination of these factors made it impractical to proceed with the proposed issue, despite having secured the necessary internal approvals from both the board and shareholders.

Impact Assessment

The withdrawal of the proposed preferential issue is expected to have minimal consequences for Citichem India Limited's operations. The company has explicitly stated that this decision will not have any material impact on its business operations or financial position. This suggests that the fund-raising initiative was not critical for immediate operational requirements or urgent capital needs.

Future Fund-Raising Considerations

While withdrawing the current proposal, Citichem India Limited has kept the door open for future capital-raising activities. The company indicated it may consider alternative fund-raising options at an appropriate time, subject to compliance with applicable laws and regulations. This approach demonstrates a pragmatic stance toward capital management, prioritizing timing and market conditions over immediate fund-raising pressures.

The withdrawal reflects broader market challenges faced by companies seeking to raise capital through preferential issues, particularly in volatile market conditions where regulatory approvals and investor sentiment play crucial roles in determining the success of such initiatives.

Citichem India Limited successfully conducted its Extra-ordinary General Meeting (EGM) on December 15, 2025, at Imperial Lounge (NSCI), The National Sports Club of India, Worli, Mumbai. The meeting commenced at 11:00 AM and concluded at 11:05 AM, with all resolutions being approved by shareholders with requisite majority.

EGM Proceedings and Attendance

The meeting was chaired by Mr. Arif Esmail Merchant, Managing Director, with Executive Director Mr. Hashim Arif Merchant and Independent Director Ms. Valentina Priyanka Creado in attendance. Ms. Khyati Palash Sheth served as Company Secretary and Compliance Officer.

Approved Warrant Issue Details

The special resolution for the issuance of convertible warrants was successfully passed through remote e-voting and voting during the EGM. The company had engaged Kfin Technologies Limited to provide remote e-voting facility to members.

Voting Process and Timeline

The company provided comprehensive voting facilities to ensure maximum shareholder participation. Remote e-voting was available from Friday, December 12, 2025, at 9:00 AM IST to Sunday, December 14, 2025, at 5:00 PM IST. Shareholders present at the meeting who had not participated in remote e-voting were provided facility to vote at the venue.

Post-Issue Shareholding Impact

The warrant conversion will significantly strengthen promoter control, with Managing Director Arif Esmail Merchant's stake increasing from 27.83% to 35.15% post-conversion.

Regulatory Compliance and Next Steps

The company has maintained full compliance with SEBI ICDR Regulations, including obtaining an independent valuation report from Ms. Pragya Jain, Chartered Accountant, and a compliance certificate from Mr. Krishna Rathi, Practicing Company Secretary. The voting results and scrutinizer's report will be announced within the prescribed timeline and communicated to stock exchanges.

The proceeds from the warrant issue will be utilized for working capital requirements, general corporate purposes, and capital expenditure, strengthening the company's financial position in the chemicals sector.