Panth Infinity has announced significant plans to restructure its capital, including a substantial increase in authorized share capital and a large-scale conversion of unsecured loans into equity shares. These moves, approved by the company's Board of Directors, are set to dramatically alter the company's capital structure and shareholding pattern.

Authorized Share Capital Increase

The Board has proposed to raise the company's authorized share capital from Rs. 37.00 crore to Rs. 60.00 crore. This represents a 62% increase in the authorized capital base. The proposal involves amending the Capital Clause (Clause V) of the company's Memorandum of Association to reflect this change.

Debt-to-Equity Conversion

In a move to strengthen its balance sheet, Panth Infinity has approved the conversion of unsecured loans into equity shares. The company plans to issue up to 3.28 crore new equity shares at a face value of Rs. 10.00 each through a preferential allotment to four investors:

1. Bhavishya Ecommerce Private Limited
2. Gromo Trading Private Limited
3. Samyak Enterprise Private Limited
4. Shital Trade Link Private Limited

The exact issue price will be determined in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Impact on Shareholding

This preferential issue is set to have a significant impact on the company's shareholding structure:

It's noteworthy that the company has no promoter holding, with all shares falling under public shareholding both before and after the proposed issue.

Regulatory Approvals and Next Steps

The proposed capital restructuring is subject to shareholder approval and necessary regulatory clearances. The Board is considering conducting an extraordinary general meeting or a postal ballot to seek shareholder approval for these proposals.

Panth Infinity Limited will submit the notice for the extraordinary general meeting or postal ballot process to the stock exchanges once it is emailed to eligible shareholders.

These strategic moves by Panth Infinity appear aimed at strengthening its capital base and improving its debt profile. Shareholders and market observers will be keenly watching how these changes impact the company's financial position and future growth prospects.

Panth Infinity Limited has announced a significant change in its corporate strategy, withdrawing previously announced plans to increase its authorized share capital and raise funds through a preferential issue of equity shares. The decision, made during a board meeting, marks a shift in the company's financial outlook and capital structure plans.

Withdrawal of Capital Increase and Fund Raising Plans

The board of directors of Panth Infinity Limited has decided to cancel the plans that were initially approved in a previous meeting. These plans included:

1. An increase in the authorized share capital from ₹37.00 crores to ₹132.00 crores.
2. A preferential issue of up to 50 million equity shares, each with a face value of ₹10.00.
3. Raising funds through the conversion of unsecured loans into equity shares.

Reasons for Withdrawal

The primary reason cited for this withdrawal is the decision by a majority of the proposed allottees to pull back their investment commitments. This unexpected development has forced the company to reconsider its capital raising strategy.

Future Plans

Despite this setback, Panth Infinity Limited has indicated that it is not abandoning its fund-raising efforts entirely. The company has announced that a subsequent board meeting will be convened to consider alternative fund-raising proposals. The date for this meeting will be communicated in due course, as per regulatory requirements.

Change in Location of Books of Accounts

In addition to the fund-raising developments, the board has approved a change in the location where the company's books of accounts will be maintained. As per Section 128 of the Companies Act, 2013, the books will now be kept at:

107, Sudershan Office Complex, Nr. Mithakhali Under Bridge, Navrangpura, Ahmedabad - 380009, Gujarat, India

This move from the registered office to a new location in Navrangpura, Ahmedabad, may be aimed at improving operational efficiency or aligning with other strategic decisions of the company.

The developments at Panth Infinity Limited underscore the dynamic nature of corporate finance and the importance of adaptability in response to changing investor sentiments. As the company regroups to explore alternative funding strategies, stakeholders will be keenly watching for the next moves in its capital management plans.