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.

Citichem India Limited , a Mumbai-based company, has announced significant strategic moves to bolster its financial position and expand its operational capacity. The company's Board of Directors has approved a series of key decisions that are set to reshape its capital structure and funding capabilities.

Fundraising Initiative

The board has given the green light to raise INR 131.60 crore through the issuance of convertible warrants. This move involves:

• Issuing 4,700,000 convertible warrants
• Pricing each warrant at INR 28.00
• Offering warrants on a preferential basis to both promoters and non-promoters

Each warrant is convertible into one equity share with a face value of INR 10.00. The conversion right can be exercised within 18 months from the date of allotment, providing flexibility to the warrant holders.

Key Investors

The warrants are proposed to be issued to five investors, subject to shareholder approval:

1. Arif Esmail Merchant
2. Hashim Arif Merchant
3. Fozia Arif Merchant
4. Saima Hashim Merchant
5. Padmakar Jagannath Murodiya

This diverse group of investors includes both individuals from the promoter group and non-promoters, indicating a balanced approach to the fundraising effort.

Increase in Authorized Share Capital

In a related move, the board has also approved an increase in the company's authorized share capital:

This increase, subject to shareholder and regulatory approvals, will provide Citichem India with greater flexibility in its capital structure and potential for future equity-based fundraising.

Regulatory Compliance and Next Steps

The fundraising through convertible warrants will be conducted in accordance with Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The relevant date for this issuance, as per SEBI regulations, is set as Friday, 29th August, 2025.

Both the warrant issuance and the increase in authorized share capital are subject to:

• Approval from regulatory and statutory authorities
• Shareholder approval at the upcoming Annual General Meeting
• Other necessary permissions and statutory approvals

Annual General Meeting

Citichem India has scheduled its 33rd Annual General Meeting for September 30, 2025, where shareholders will have the opportunity to vote on these proposals.

Market Implications

This strategic fundraising initiative, coupled with the increase in authorized share capital, signals Citichem India's intent to strengthen its financial position and potentially fund future growth initiatives. The preferential allotment to both promoters and non-promoters suggests a balanced approach to equity participation and could potentially broaden the company's investor base.