Prabha Energy Limited announced significant corporate developments following its board meeting held on December 26, 2025, including approval for a major rights issue and key leadership changes. The company has now formally intimated the stock exchanges regarding the Managing Director's resignation effective December 31, 2025.

Managing Director Resignation Formalized

Following the earlier board meeting announcement, Prabha Energy formally intimated BSE and NSE on January 5, 2026, regarding Mr. Shail Manoj Savla's resignation from the Managing Director position. The resignation became effective from closing business hours of December 31, 2025.

The formal resignation letter dated December 26, 2025, was submitted to the Board of Directors, expressing gratitude for continued support and cooperation during his tenure.

New Managing Director Appointment

Mr. Shanil Paras Savla (DIN: 08763065) has been appointed as Additional Executive Director and subsequently re-designated as Managing Director, effective January 1, 2026.

Mr. Savla brings expertise in project finance and understanding of geopolitical risks impacting supply chains and pricing. He will be responsible for Finance, Investment, Management and Administration, Marketing and Strategy.

Rights Issue Approval

The board approved raising funds through a rights issue of equity shares with a face value of ₹1.00 each for an aggregate amount not exceeding ₹1,900.00 crores.

The detailed terms including quantum, issue price, rights entitlement ratio, record date, and payment mechanism will be determined by the Rights Issue Committee in accordance with applicable laws and subject to necessary regulatory approvals.

Regulatory Authorizations

The board authorized key managerial personnel for determining materiality of events and making disclosures to stock exchanges under Regulation 30(5) of SEBI LODR Regulations, effective January 1, 2026.

The company will issue a postal ballot notice in due course for shareholder approvals of the proposed appointments.

Prabha Energy Limited (PEL) has marked a significant milestone in its operations by commencing commercial production of Coal Bed Methane (CBM) gas from the North Karanpura CBM Block. The company, acting as a joint operator, has initiated gas sales through cascades as an early monetization strategy while work on the gas evacuation pipeline connection continues.

Early Monetization and Future Prospects

PEL has begun selling gas through cascades, a temporary measure to capitalize on production before the completion of permanent infrastructure. This approach allows the company to generate revenue while the gas evacuation pipeline is being constructed. Upon the pipeline's completion, PEL anticipates a potential increase in gas sale volumes, which may boost its market presence and financial performance.

Strategic Positioning in India's Energy Sector

Chairman and Director Prem Singh Sawhney emphasized the significance of this development, stating, "This milestone achievement marks a significant step in the company's journey towards the strategic objective of monetizing our gas reserves." He further highlighted that this move reinforces PEL's commitment to strengthening its position in India's unconventional energy sector and contributing to the country's energy security.

Alignment with Government Initiatives

PEL's commencement of CBM gas production aligns with the Central Government's plan to increase CBM gas production to 5.0 MMSCMD (Million Metric Standard Cubic Meters per Day) by FY2027-28. This strategic alignment may position PEL to play a role in the CBM segment, potentially capturing a share of the growing market.

Company Background and Future Outlook

Prabha Energy Limited, incorporated in 2009, has established itself as a player in the exploration and production sector, with interests spanning CBM, Marginal Gas Fields, and NELP blocks in India. The company's portfolio encompasses both conventional and unconventional hydrocarbon assets, reflecting its commitment to unlocking India's energy resources.

As India aims to increase the share of natural gas in its primary energy mix from the current 6-7% to 15% by 2030, PEL's focus on CBM production may position it to capitalize on this growing market. The company's efforts align with broader national goals of expanding city gas distribution networks, encouraging private sector participation, and promoting clean fuels.

With the commencement of commercial CBM gas production at the North Karanpura block, Prabha Energy Limited has taken a step towards realizing its potential in India's evolving energy landscape. As the company continues to develop its assets and expand production, it may play a role in meeting India's growing energy demands and supporting the transition to cleaner fuel sources.