Hittco Tools Limited has issued a comprehensive postal ballot notice to shareholders seeking approval for a preferential allotment of equity shares worth ₹61.94 lakhs. The company has engaged Central Depository Services Limited (CDSL) to facilitate remote e-voting for the proposed resolutions.

Preferential Allotment Details

The postal ballot seeks approval for issuing 4,45,000 equity shares of face value ₹10.00 each at an issue price of ₹13.92 per share. The allotment targets both promoter and non-promoter categories with specific allocations:

The issue price of ₹13.92 per share has been determined in accordance with SEBI ICDR Regulations, representing the higher of the 90-day volume weighted average price (₹13.64) and 10-day volume weighted average price (₹13.92) preceding the relevant date of January 19, 2026.

Shareholding Impact

The preferential allotment will significantly alter the shareholding pattern of key stakeholders:

E-Voting Process and Timeline

The company has established a comprehensive remote e-voting framework with specific timelines and procedures:

Eligible shareholders whose names appear in the register of members as on the cut-off date can participate in the e-voting process through CDSL's platform at www.evotingindia.com .

Regulatory Compliance and Objectives

The preferential allotment complies with Sections 42 and 62(1)(c) of the Companies Act, 2013, and Chapter V of SEBI ICDR Regulations, 2018. The company has obtained necessary certifications from practicing company secretaries and independent registered valuers.

The funds raised through this preferential allotment will be utilized for working capital requirements, expansion plans, debt repayment, and general corporate purposes. The company aims to enhance production capacity, invest in infrastructure upgrades, and maintain financial stability during market uncertainties.

Additional Resolution

The postal ballot also includes a second resolution to cancel a special resolution passed at the Annual General Meeting held on September 30, 2025, which had previously approved a different preferential allotment of shares. The board recommends rescinding this earlier resolution to avoid compliance complications and ensure clarity in the company's capital-raising strategy.

The equity shares issued under this preferential allotment will be subject to lock-in requirements as per SEBI ICDR Regulations and will rank pari-passu with existing equity shares of the company.

Hittco Tools Limited announced multiple corporate decisions following its board meeting held on January 19, 2026, at the company's registered office. The meeting, which commenced at 10:00 AM and concluded at 3:00 PM, addressed several key matters including share allotment, forfeiture, and director appointment.

Preferential Share Allotment Approved

The board approved the issuance and allotment of up to 4,45,000 equity shares on a preferential basis, subject to regulatory and shareholder approvals. The allotment will be conducted in accordance with Chapter V of the SEBI ICDR Regulations and other applicable laws.

The board also considered a valuation report from a registered valuer as part of the preferential allotment process. Additionally, the company cancelled the special resolution passed at the 31st Annual General Meeting held on September 30, 2025, regarding the previous preferential allotment approval.

Share Forfeiture Due to Non-Payment

The board approved the forfeiture of 2,47,600 partly paid equity shares of face value ₹10.00 each due to non-payment of call money as per the terms of issue. The forfeited shares will be cancelled, and the Register of Members will be updated accordingly.

New Independent Director Appointment

Following recommendations from the Nomination and Remuneration Committee, the board appointed Mr. Ranjan Kotekar (DIN: 02964263) as Additional Independent Director effective January 19, 2026. Mr. Kotekar brings over 10 years of management experience and is described as having a positive, inspiring, and experienced personality.

Machinery Rental Agreement

The company entered into a machinery rental agreement with related party Hittco Industries Private Limited for manufacturing equipment to enhance production capacity.

Administrative Appointments

The board appointed M/s Manjeet & Associates, Company Secretary in practice, as Scrutinizer for conducting the postal ballot process in a fair and transparent manner. The company will make necessary disclosures and filings with statutory authorities in compliance with applicable laws for all approved matters.