Kilitch drugs (India) Limited has announced an Extraordinary General Meeting (EGM) scheduled for Friday, March 13, 2026, at 11:30 AM (IST) through video conferencing. The pharmaceutical company seeks shareholder approval for two significant corporate actions: increasing authorized capital and issuing bonus shares to reward shareholders.

Key Meeting Details

The EGM will be conducted exclusively through Video Conferencing (VC) or Other Audio-Visual Means (OAVM) in compliance with MCA and SEBI circulars. The company has set important dates for shareholder participation:

Authorized Capital Increase Proposal

The first resolution seeks to increase the company's authorized share capital substantially. The proposal involves expanding the capital base to facilitate future fund raising and bonus share issuance:

This increase requires amendment to Clause V of the company's Memorandum of Association and will be passed as an Ordinary Resolution under Sections 13 and 62 of the Companies Act, 2013.

Bonus Share Issue in 1:1 Ratio

The second resolution proposes issuing bonus shares in a 1:1 ratio, meaning shareholders will receive one bonus share for every existing share held. The company plans to capitalize reserves for this distribution:

The bonus issue will be funded from the company's free reserves and securities premium, based on the unaudited balance sheet as of December 31, 2025. This proposal requires approval as a Special Resolution under Section 63 of the Companies Act, 2013.

Voting and Participation Process

Shareholders whose names appear in the Register of Members or Register of Beneficial Owners as on the cut-off date of March 4, 2026, will be eligible to participate in remote e-voting and the EGM. The company has engaged MUFG Intime India Private Limited to provide e-voting services through their InstaVote platform.

Members can access the voting facility through multiple channels including NSDL and CDSL depository websites, or directly through the InstaVote portal for physical shareholders. The company will also provide e-voting facility during the EGM for those who haven't voted remotely.

Corporate Rationale

The management stated that the authorized capital increase will facilitate future fund raising activities and the proposed bonus issue. The company has consistently rewarded shareholders and built substantial free reserves over the years through strong revenue and profit performance. The 1:1 bonus ratio reflects the board's confidence in sharing the company's accumulated reserves with shareholders while maintaining adequate capital for future growth initiatives.

Kilitch Drugs (India) Limited has submitted its quarterly monitoring agency report for Q3FY26 to stock exchanges, demonstrating compliance with SEBI regulations regarding the utilization of funds raised through its rights issue. The report, dated February 10, 2026, was prepared by Infomerics Valuation and Rating Limited and covers the quarter ended December 31, 2025.

Rights Issue Details and Fund Utilization

The company had raised Rs. 49.92 crore through a rights issue conducted from July 23, 2025, to August 21, 2025, issuing 13,98,463 equity shares at Rs. 357 per share (including a premium of Rs. 347.00). After accounting for issue-related expenses, the net proceeds available for utilization stood at Rs. 49.45 crore.

Project Progress and Fund Deployment

During Q3FY26, the company utilized Rs. 22.05 crore towards capital expenditure for its Greenfield project at Pen, Maharashtra. The cumulative utilization for this primary object has reached Rs. 40.35 crore out of the allocated Rs. 47.00 crore.

Monitoring Agency Assessment

Infomerics Valuation and Rating Limited, serving as the monitoring agency, reported no deviations from the objects stated in the offer document. The agency confirmed that all utilization has been in accordance with the disclosures made in the prospectus. The company's statutory auditors, M/s. C. Sharat & Associates, Chartered Accountants, verified the fund utilization and confirmed no deviation or variation in the use of raised funds.

Unutilized Fund Management

The company has deployed its unutilized proceeds of Rs. 8.49 crore prudently in fixed deposits with Kotak Mahindra Bank, earning a return of 6.35% per annum with maturity on August 29, 2026. The monitoring agency noted that the market value of these investments stood at Rs. 8.74 crore at the end of Q3FY26, reflecting accrued interest.

Project Timeline and Compliance

The Greenfield project at Pen, Maharashtra, remains on track with no reported delays. The project is designed to enhance the company's manufacturing capacity to meet growing demand across domestic and international markets, as the existing Navi Mumbai facility operates at near full capacity. The monitoring agency confirmed that all necessary government and statutory approvals have been obtained, and the project implementation continues as per the timeline specified in the offer document.