Sadhana Nitrochem has announced a significant corporate action that could pave the way for future growth and capital raising initiatives. The company's Board of Directors has approved an increase in the authorized share capital and consequent alteration of the Memorandum of Association, subject to shareholder approval.

Key Developments

Board Approval

The Board of Directors passed a circular resolution approving the increase in authorized share capital based on the recommendation of the Audit Committee.

Shareholder Approval Pending

The proposed changes are subject to approval by the company's shareholders at an upcoming Extraordinary General Meeting (EGM).

EGM Preparations

The board has taken several steps to facilitate the EGM:

• Approved the draft notice for the EGM
• Authorized the Company Secretary to sign the notice on behalf of the company
• Decided to use NSDL services for e-voting and video conferencing
• Appointed a scrutinizer to oversee the voting process

Regulatory Compliance

The company has informed the stock exchanges about these developments in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Legal Representation

The board has authorized directors to represent the company before judicial, quasi-judicial, and statutory authorities.

Implications

An increase in authorized share capital is often seen as a preparatory step for companies planning to raise additional funds or issue new shares. While the specific reasons for this move have not been disclosed, it could potentially signal Sadhana Nitrochem's intentions for future growth, acquisitions, or other strategic initiatives.

Investors and market watchers will likely keep a close eye on the upcoming EGM and any further announcements from the company regarding its plans for utilizing the increased capital base.

The date for the Extraordinary General Meeting has not been announced yet, but shareholders can expect to receive the official notice soon, which will provide more details on the proposed changes and the voting process.

Sadhana Nitrochem, a player in the chemical industry, appears to be positioning itself for potential expansion or capital restructuring. Shareholders and potential investors should stay tuned for further updates as the company moves forward with this significant corporate action.

Sadhana Nitrochem , a prominent player in the chemical industry, held its 52nd Annual General Meeting (AGM) on September 29, 2025, through video conferencing. The meeting, which saw participation from shareholders, resulted in the approval of seven out of eight resolutions, with one notable exception.

Dividend Proposal Rejected

In a surprising turn of events, shareholders voted against Resolution No. 2, which proposed a final dividend of 10% (Rs. 0.10 per equity share) for the financial year ended March 31, 2025. This resolution was the only one that failed to secure the required majority, with 98.63% of the votes cast against it.

Approved Resolutions

The AGM saw the passage of several key resolutions, including:

1. Adoption of financial statements for the year ended March 31, 2025
2. Re-appointment of Mr. Asit D. Javeri as a director
3. Ratification of cost auditor remuneration
4. Appointment of a secretarial auditor
5. Increase in authorized share capital and consequent alteration of the Memorandum of Association
6. Enhancement of existing borrowing limits under Section 180(1)(c) of the Companies Act, 2013
7. Creation of charges on company assets under Section 180(1)(a) of the Act

Voting Details

The scrutinizer's report, prepared by Ms. Hetal Doshi of M/s. Hetal Doshi & Associates, confirmed that the voting process was conducted fairly. Key voting statistics include:

Financial Decisions

While shareholders approved the enhancement of borrowing limits and the creation of charges on company assets, the rejection of the dividend proposal suggests a preference for reinvestment of profits or concerns about the company's cash flow.

Corporate Governance

The appointment of a secretarial auditor and the ratification of the cost auditor's remuneration demonstrate the company's commitment to maintaining strong corporate governance practices.

Sadhana Nitrochem's management will need to address shareholder concerns regarding the dividend policy while moving forward with the approved resolutions to guide the company's future growth and financial strategies.