Prima Industries Ltd, a Kerala-based company, has announced a significant change to its preference share structure, extending the redemption period of its unlisted preference shares by seven years. This decision, approved by the company's Board of Directors, aims to enhance cash flow management and align with long-term business strategies.

Key Details of the Extension

The Board of Directors of Prima Industries Ltd, in a meeting held on August 4, 2025, approved the extension of the redemption period for 60,00,000 unlisted 10% Non-Convertible Redeemable Preference Shares. These shares, with a face value of ₹10 each, were originally set to be redeemed on March 26, 2026. With this new decision, the redemption date has been pushed back to March 26, 2033.

Financial Implications

The extension affects preference shares totaling ₹6.00 crore in value. This move is expected to provide Prima Industries with improved financial flexibility over the next several years. By delaying the redemption, the company can retain this capital for a longer period, potentially using it for operational needs or strategic investments.

Rationale Behind the Decision

According to the company's disclosure, the primary reasons for extending the redemption period are:

1. Better cash flow management
2. Alignment with long-term business plans

This strategic decision suggests that Prima Industries is looking to strengthen its financial position and create a more favorable environment for executing its future business strategies.

Regulatory Compliance and Next Steps

While the Board has approved this extension, it is important to note that the decision is subject to shareholder approval at the upcoming general meeting. Additionally, the company may need to secure other necessary regulatory approvals.

Prima Industries has committed to taking the required steps to obtain these approvals and will keep the stock exchange informed of any further developments regarding this matter.

Management Changes

In related news, Prima Industries also announced changes in its management team. Ms. Nayana V B has been appointed as the new Company Secretary and Compliance Officer, effective August 1, 2025. She replaces Mrs. Malavika S Kumar, who resigned from the position on July 30, 2025.

Conclusion

The extension of the preference share redemption period represents a significant financial decision for Prima Industries Ltd. As the company moves forward with this plan, stakeholders will be watching closely to see how this extended timeline impacts the company's financial strategies and overall performance in the coming years.

Shareholders and potential investors should note that this decision is still pending approval at the general meeting, and the final outcome may depend on the shareholders' vote and any required regulatory clearances.

Prima Industries has announced its unaudited financial results for the first quarter and made several key corporate decisions in a board meeting held on August 4.

Financial Results

The company's board of directors approved and adopted the unaudited financial results for both standalone and consolidated operations for the quarter ended June. The results were also approved by the audit committee in its meeting held on the same day.

Annual General Meeting

Prima Industries has scheduled its 31st Annual General Meeting (AGM) for September 15, at 11:00 AM. The event will take place at The Renai Cochin, P.B.No. 2310, Metro Pillar No.515, Palarivattom, Cochin - 682025.

Management Changes

The company announced significant changes in its key management positions:

1. Mrs. Malavika S Kumar resigned as Company Secretary and Compliance Officer, effective July 30.
2. Ms. Nayana V B has been appointed as the new Company Secretary and Compliance Officer, effective August 1. Ms. Nayana is a qualified Company Secretary from the Institute of Company Secretaries of India (ICSI) with experience in handling secretarial and compliance matters.

Extension of Preference Shares Redemption

In a strategic financial move, the board approved the extension of the redemption period for 60,00,000 unlisted 10% redeemable preference shares. These shares, with a face value of ₹10 each, aggregating to ₹6 crore, were originally issued on March 27, 2013, and were due for redemption on March 26, 2026. The redemption date has now been extended by seven years to March 26, 2033. The company cited better cash flow management as the reason for this extension.

Other Key Decisions

1. The board appointed Mr. Bibin Sajan, FCA (Membership Number - 228064) of M/s Grandmark & Associates, Chartered Accountants (Firm Registration No. 011317N), as the scrutinizer for e-voting at the upcoming AGM.

2. The Register of Members and Share Transfer Books of the company will remain closed from September 9 to September 15 (both days inclusive) for the purpose of the AGM.

3. The board has set September 9 as the cut-off date to determine the eligibility of members to cast their votes electronically or physically on the resolutions set forth in the AGM notice.

Prima Industries has stated that these announcements are available on the company's website at www.primaindustries.in . The board meeting, which commenced at 3:00 PM, concluded at 4:00 PM on August 4.

Investors and stakeholders are advised to take note of these developments, particularly the changes in key management positions and the extension of preference shares redemption, which may have implications for the company's future financial strategies.