Lykis Limited , a Mumbai-based company, has issued a postal ballot notice seeking shareholder approval for two significant resolutions that could impact its financial operations and investment capabilities.

Related Party Transaction with Lykis Exports LLC

The first resolution involves approving a material related party transaction with Lykis Exports LLC, a wholly owned subsidiary of Lykis Limited. The company proposes to provide financial assistance of up to ₹90.00 crores to meet Lykis Exports LLC's working capital requirements. This transaction represents 29.86% of Lykis Limited's annual consolidated turnover.

Lykis Limited plans to extend this support through a guarantee amounting to ₹90.00 crores, which may be issued in one or more tranches. The company has arranged funds through internal resources, borrowings from scheduled commercial banks, and management support.

Increase in Investment Limits

The second resolution seeks shareholder approval to increase the company's investment limits under Section 186 of the Companies Act, 2013. Lykis Limited proposes to raise the limit to ₹90.00 crores, exceeding the statutory thresholds for loans, guarantees, and securities investments.

This increase aims to provide greater financial flexibility and enable optimal financial structuring for the company. If approved, it will allow Lykis Limited to acquire securities of other body corporates beyond the current statutory limits.

Voting Process and Timeline

The company has engaged the National Securities Depository Limited (NSDL) to facilitate the e-voting process. Shareholders can cast their votes electronically from September 21 to October 20. Ms. Komal Birmiwala, a Practicing Company Secretary, has been appointed as the scrutinizer for the postal ballot process.

Financial Implications

The proposed related party transaction and increased investment limits could significantly impact Lykis Limited's financial position and operations. The company's board believes these measures will provide greater financial flexibility and support the working capital needs of its subsidiary.

Lykis Limited's management has provided justification for the related party transaction, citing Lykis Exports LLC's need for working capital to conduct its business operations. The loan terms include a one-year tenure with an 8% per annum interest rate charged by the scheduled commercial bank.

Shareholders are advised to carefully consider the implications of these resolutions before casting their votes. The results of the postal ballot are expected to be announced by October 21.

Lykis Limited has announced several significant decisions following a board meeting held on September 18, 2025. The company's Board of Directors approved multiple key initiatives that are set to impact its financial operations and strategic direction.

Material Related Party Transaction

The board has given the green light to a material related party transaction with Lykis Exports LLC, a wholly-owned subsidiary of Lykis Limited. This transaction involves loan arrangements and financial support to meet the working capital requirements of Lykis Exports LLC. The approved transaction value is set at Rs. 90.00 Crore, to be conducted over a one-year period.

Increased Investment and Loan Limits

In a move to enhance the company's financial flexibility, the board has approved an increase in the limits for granting loans, making investments, and providing guarantees under Section 186 of the Companies Act, 2013. The new limit has been set at Rs. 90.00 Crores, aligning with the value of the related party transaction.

Sale of Trademarks

The board has also given its approval for the sale of trademarks registered in the company's name. While specific details about the trademarks or the potential buyers were not disclosed, this decision could potentially impact the company's brand portfolio and intellectual property assets.

Postal Ballot Notice

Additionally, the board has authorized the issuance of a postal ballot notice. This suggests that the company may seek shareholder approval for certain matters, although the specific items to be voted on were not detailed in the announcement.

Transaction Details

According to the disclosure provided under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transactions with Lykis Exports LLC will be conducted in the normal course of business. The company stated that these transactions will adhere to terms and conditions that are generally prevalent in the industry segments in which Lykis Limited operates.

The board meeting, which commenced at 04:30 P.M. and concluded at 06:35 P.M., marks a significant day for Lykis Limited as it sets the stage for expanded financial operations and strategic moves in the coming year.