Gujarat Poly Electronics Limited has completed the redemption of its entire preference share capital, paying Rs. 9,81,50,000 to eliminate all outstanding preference shares. The transaction, executed on February 25, 2026, represents a significant capital restructuring move by the Mumbai-based electronics company.

Redemption Details

The company redeemed 9,81,500 unlisted ½% Non-Cumulative Redeemable Preference Shares, each carrying a face value of Rs. 100. The redemption was carried out at par value using profits generated by the company.

Preference Shareholder and Tax Implications

Polychem Limited, identified as a promoter of Gujarat Poly Electronics Limited, was the sole holder of these preference shares. The company deducted Tax Deducted at Source (TDS) at the rate of 0.1% from the redemption amount paid to the preference shareholder, in compliance with applicable tax regulations.

Impact on Capital Structure

Following the completion of this redemption process, Gujarat Poly Electronics Limited's preference share capital has been reduced to nil. This development follows the company's earlier announcement dated January 28, 2026, indicating that the redemption was a planned corporate action communicated to stakeholders in advance.

Regulatory Compliance

The redemption was conducted in accordance with the provisions of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has fulfilled its disclosure obligations by informing the Bombay Stock Exchange about this material development, ensuring transparency for all stakeholders.

The transaction represents the complete elimination of preference share capital from Gujarat Poly Electronics Limited's capital structure, streamlining its equity composition and potentially providing greater financial flexibility for future operations.

Gujarat Poly Electronics Limited delivered exceptional financial performance in Q3FY26, reporting a remarkable surge in profitability driven by strategic asset transactions and operational improvements. The company's Board of Directors approved both the quarterly results and a significant preference share redemption during their meeting held on January 28, 2026.

Financial Performance Highlights

The company demonstrated outstanding financial results for the quarter and nine-month periods ended December 31, 2025:

Nine-Month Performance

For the nine months ended December 31, 2025, the company maintained strong momentum:

Strategic Asset Transaction

The exceptional performance was primarily driven by a significant real estate transaction during the quarter. The company sold leasehold rights of land along with factory/building at Plot No. B/18, Gandhinagar Electronic Estate, GIDC, Gandhinagar for ₹2,900 lakhs, which was accounted under other income.

Simultaneously, the company acquired leasehold rights of land with factory/building at Plot No. E/188, Gandhinagar Electronic Estate, GIDC, Gandhinagar, measuring 794 square meters for ₹365 lakhs, excluding GIDC transfer fees and stamp duty.

Preference Share Redemption

The Board approved the redemption of unlisted preference shares with the following details:

Following this redemption, the company's preference share capital will become nil, with no outstanding dividends against the unlisted preference shares.

Operational Metrics

The company operates in the manufacturing and trading of electronic capacitors segment, with revenue substantially derived from the domestic market. Total expenses for Q3FY26 were ₹411.69 lakhs compared to ₹375.05 lakhs in Q3FY25, reflecting controlled cost management despite the business activities.

The paid-up equity share capital remained stable at ₹855.00 lakhs with a face value of ₹10 per share. The financial results were reviewed by the Audit Committee and approved by the Board, with statutory auditors G.M. Kapadia & Co. conducting a limited review of the results.