Eimco Elecon (India) Limited has successfully concluded its postal ballot process, with shareholders overwhelmingly approving all three proposed resolutions including adoption of a new Memorandum of Association, business expansion, and promoter reclassification.

Postal Ballot Results

The company announced the results of its postal ballot conducted through remote e-voting, which concluded on December 27, 2025. All three resolutions were passed with requisite majority by the shareholders, as confirmed by scrutinizer CS J.J. Gandhi.

Voting Participation and Statistics

The postal ballot witnessed significant participation from shareholders across all categories. Out of 18,967 total shareholders on the record date of November 21, 2025, the voting process saw substantial engagement through the e-voting platform provided by MUFG Intime India Pvt. Ltd.

Category-wise Voting Breakdown

The voting pattern showed strong support across all shareholder categories. Promoter and promoter group shareholders holding 28,23,920 shares achieved 99.95% participation with unanimous approval. Public institutions with 2,35,081 shares recorded 19.20% participation, while public non-institutions holding 27,09,384 shares had 0.49% participation.

New Business Expansion Scope

The approved alteration of the Objects clause significantly expands Eimco Elecon's business scope into three new strategic sectors. The company can now venture into construction machinery business, involving designing, developing, manufacturing, and trading of construction equipment operated by electricity, steam, or mechanical force for chemical, mechanical, electrical, electronic, metallurgical, agricultural, infrastructure, and other engineering industries.

MOA Restructuring Details

The new Memorandum of Association brings the company's charter in line with the Companies Act 2013, replacing the earlier framework based on the Companies Act 1956. The restructured MOA divides the objects clause into two distinct parts: main objects under Clause III(A) and matters necessary for furtherance under Clause III(B). The liability clause has been updated to clearly specify that member liability is limited to unpaid amounts on shares held by them.

Regulatory Compliance and Process

The postal ballot process was conducted in compliance with Section 108 and 110 of the Companies Act 2013, along with SEBI (LODR) Regulations 2015. The company followed MCA circulars and conducted the entire process through remote e-voting without physical ballot papers. Public advertisements were published in Business Standard and Jaihind-Ahmedabad newspapers on November 27, 2025.

Corporate Transformation Impact

These approvals mark a significant milestone in Eimco Elecon's corporate transformation journey. The company can now proceed with its planned business expansion into construction machinery, defence platforms, and pharmaceuticals while completing the regulatory process for promoter reclassification with stock exchanges. The overwhelming shareholder support demonstrates confidence in the company's strategic direction and diversification plans across multiple industrial sectors.

Renowned investor Vijay Kedia has made a significant move in the stock market, acquiring nearly 1% stake in Eimco Elecon , while simultaneously expressing skepticism about the genuine utilization of Artificial Intelligence (AI) by Indian companies.

Investment Details

Kedia Securities Ltd., Vijay Kedia's firm, purchased 57,441 shares of Eimco Elecon at Rs 1,906.00 per share, amounting to an investment of approximately Rs 10.00 crore. This acquisition represents nearly 1% stake in the company.

Market Response

The stock market reacted positively to this development:

Kedia's Views on AI in Indian Companies

Vijay Kedia shared his perspective on the adoption of AI by Indian businesses:

• No Indian company is genuinely utilizing AI in their operations
• Businesses incorporate AI into presentations regardless of practical application
• Companies actually using AI in operations will benefit

Sector Outlook

Kedia highlighted the data centre sector as having bright prospects in India, suggesting potential growth opportunities in this area.

Company Update

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, Eimco Elecon recently published its unaudited financial results for the quarter and half-year ended on 30th September. The results were published in Business Standard (English) and Jai Hind (Gujarati) newspapers on 10th October.

Kedia's investment in Eimco Elecon, coupled with his views on AI adoption and the data centre sector, provides insights into his investment strategy and outlook on the Indian market. As the company prepares to release its latest financial results, investors will be keenly watching for any impact of these developments on the stock's performance.