News Corporate Actions MTAR Technologies Announces Postal Ballot for Borrowing Limit Enhancement and Director Commission ApprovalMTAR Technologies Announces Postal Ballot for Borrowing Limit Enhancement and Director Commission Approval
MTAR Technologies Limited has announced a postal ballot for shareholder approval on three key resolutions through remote e-voting from February 19-March 20, 2026. The proposals include increasing borrowing limits to Rs. 800 crores for the company and Rs. 900 crores including subsidiaries, enabling asset security creation, and enhancing independent director commission from Rs. 15.00 lakhs to Rs. 25.00 lakhs per director. Results will be declared on March 20, 2026, with the cut-off date set for February 13, 2026.
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MTAR Technologies Limited has issued a notice for postal ballot seeking shareholder approval on critical business matters through remote e-voting. The company has scheduled the voting process from February 19, 2026, at 9:00 AM to March 20, 2026, at 5:00 PM, with the cut-off date set for February 13, 2026.
Key Voting Schedule and Process
The postal ballot process follows a structured timeline with specific dates for shareholder participation:
| Parameter | Details |
|---|---|
| Cut-off Date | Friday, February 13, 2026 |
| E-voting Start | Thursday, February 19, 2026 at 9:00 AM |
| E-voting End | Friday, March 20, 2026 at 5:00 PM |
| Results Declaration | March 20, 2026 after 5:00 PM |
| Scrutinizer | Mr. S Sarweswara Reddy (FCS 12619, CP No. 7478) |
The company has engaged Kfin Technologies Limited to provide remote e-voting services, ensuring shareholders can participate electronically in the decision-making process.
Proposed Borrowing Limit Enhancement
The first major proposal involves increasing the company's borrowing capacity under Section 180(1)(c) of the Companies Act, 2013. Currently, MTAR Technologies is permitted to borrow up to Rs. 730.72 crores without member approval. The management now seeks to enhance these limits significantly:
| Borrowing Category | Proposed Limit |
|---|---|
| Company Alone | Rs. 800 crores |
| Company with Subsidiaries/Associates | Rs. 900 crores |
| Current Limit (without approval) | Rs. 730.72 crores |
This enhancement aims to address future funding requirements and provide operational flexibility for the company's growth initiatives.
Asset Security Creation Powers
The second resolution seeks approval under Section 180(1)(a) of the Companies Act, 2013, for creating mortgage or charge on company assets. This proposal aligns with the enhanced borrowing limits, enabling the board to:
- Create floating charges on present and future assets
- Mortgage, hypothecate, or pledge moveable and immovable properties
- Secure borrowings for the company and its subsidiaries
- Negotiate terms for asset-backed financing arrangements
The aggregate indebtedness secured by company assets will not exceed the limits approved under the borrowing resolution.
Independent Director Commission Structure
The third resolution proposes enhancing compensation for independent directors, recognizing their increased responsibilities and contributions to corporate governance:
| Commission Structure | Current | Proposed |
|---|---|---|
| Per Independent Director | Rs. 15.00 lakhs | Rs. 25.00 lakhs |
| Alternative Calculation | - | Up to 1% of net profits |
| Selection Criteria | - | Whichever is lower |
| Aggregate Cap (5 Directors) | Rs. 75.00 lakhs | Rs. 1.25 crores |
| Effective Period | - | 5 years from FY 2026-27 |
This commission structure is additional to sitting fees and expense reimbursements for board and committee meetings.
Regulatory Compliance and Governance
The postal ballot notice demonstrates MTAR Technologies' commitment to regulatory compliance under various provisions:
- Section 110 and 108 of the Companies Act, 2013
- Companies (Management and Administration) Rules, 2014
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- Secretarial Standards on General Meetings (SS-2)
The board approved these proposals in their meeting held on January 29, 2026, recommending all three special resolutions for shareholder approval. The company has provided comprehensive explanatory statements detailing the rationale and implications of each proposal, ensuring transparent communication with stakeholders.
Historical Stock Returns for MTAR Technologies
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.36% | +2.96% | +40.23% | +146.82% | +196.97% | +245.96% |
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