Harish Textile Engineers Limited has issued a corrigendum to its Extra-ordinary General Meeting (EGM) notice, providing additional clarity on the preferential equity share issuance scheduled for shareholder approval.

EGM Corrigendum Details

The company issued the corrigendum on March 09, 2026, to its EGM notice dated February 10, 2026. The meeting is scheduled for Wednesday, March 11, 2026 at 11:00 A.M. (IST) through Video Conferencing (VC) / Other Audio Visual Means (OAVM). The corrigendum addresses certain alterations and modifications made to the Explanatory Statement of Special Resolution pertaining to Item No. 1 of the EGM Notice, as per requirements of BSE Limited in response to the company's application for in-principle approval for preferential issue.

Preferential Issue Structure

The preferential issue involves the issuance of 21,23,800 fully paid-up equity shares with a face value of Rs. 10 each. The shares are priced at Rs. 64 per equity share, including a securities premium of Rs. 54 per share, aggregating to Rs. 13,59,23,200.

Allottee Categories and Consideration

The corrigendum specifically adds bifurcation of consideration details to the original notice. The issue includes allotments to both promoter and non-promoter categories with varying consideration modes:

Key Promoter Allottees:

• Shovan Sandeep Gandhi: 525,000 shares for Rs. 3,36,00,000 (In Cash)
• Shaiv Sandeep Gandhi: 525,000 shares for Rs. 3,36,00,000 (In Cash)
• Sandeep Kirti Gandhi: 554,600 shares for Rs. 3,54,94,400 (Allotment other than cash/issue against credit balance)

Non-Promoter Allottees: The issue includes 32 non-promoter allottees with allocations ranging from 1,500 to 105,000 shares, with most receiving consideration in cash.

Shareholding Impact

Post-preferential issue, the promoter and promoter group shareholding will increase from 48.15% to 58.97%. The total number of equity shares will increase from 33,36,000 to 54,59,800 shares.

Fund Utilization

The company intends to utilize the proceeds for multiple purposes with specific timelines:

Regulatory Compliance

The preferential issue complies with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, and SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The relevant date for price determination is February 09, 2026, being 30 days prior to the EGM date. The floor price of Rs. 64 per share is determined based on the highest of 90-day and 10-day volume weighted average prices preceding the relevant date.

The equity shares proposed for allotment will be subject to lock-in provisions as specified under Chapter V of SEBI ICDR Regulations and will be listed on BSE Limited where the company's existing shares are traded.

Harish Textile Engineers Limited announced that its Board of Directors has approved a significant fund-raising initiative through a preferential issue of equity shares. The board meeting, held on February 10, 2026, at the company's registered office in Mumbai, concluded with the approval of issuing up to 21,23,800 fully paid-up equity shares to raise funds aggregating up to ₹13,59,23,200.

Preferential Issue Details

The company plans to issue equity shares with specific pricing and structure as outlined by the board:

The preferential issue will be conducted on a private placement basis, targeting investors from both promoter and non-promoter categories. The issuance is structured in accordance with Section 42 and Section 62 of the Companies Act, 2013, along with SEBI ICDR Regulations and other applicable laws.

Investor Allocation Structure

The proposed allotment reveals a diverse investor base with varying investment amounts. Notable allocations include significant stakes to promoter group members and external investors:

Major Allocations:

• Sandeep Kirtikumar Gandhi: 5,54,600 shares (₹3,54,94,400)
• Shovan Sandeep Gandhi: 5,25,000 shares (₹3,36,00,000) - Cash
• Shaiv Sandeep Gandhi: 5,25,000 shares (₹3,36,00,000) - Cash
• Mukesh Dalichand Sheth: 1,05,000 shares (₹67,20,000)
• Hiren Rasiklal Doshi: 1,00,000 shares (₹64,00,000)

The majority of allotments are structured as "issue against credit balance" rather than cash payments, with only three investors making cash payments totaling ₹7,03,20,000.

Regulatory Approvals and Timeline

The preferential issue is subject to multiple approvals, including shareholder consent and regulatory clearances. The company has scheduled an Extraordinary General Meeting (EGM) for Wednesday, March 11, 2026, to seek member approval for the proposed fund raise.

The board meeting commenced at 2:00 PM and concluded at 6:05 PM, indicating comprehensive deliberations on the proposal. The company has submitted the required disclosures under Regulation 30 of SEBI Listing Regulations to BSE Limited, where the company trades under scrip code 542682.

Strategic Implications

This preferential issue represents a significant capital raising exercise for Harish Textile Engineers Limited, with the funds expected to support the company's growth initiatives and operational requirements. The mix of cash and non-cash considerations suggests a strategic approach to debt conversion and fresh capital infusion, positioning the company for enhanced financial flexibility.