Sancode Technologies Limited (BSE: 543897) has received in-principle approval from the BSE for a significant corporate action. The company plans to issue convertible warrants on a preferential basis, marking a potential expansion of its equity base.

Key Details of the Approval

Regulatory Compliance and Next Steps

The BSE's in-principle approval comes with several conditions that Sancode Technologies must adhere to:

1. Regulatory Compliance: The company must ensure that the issue and allotment of securities strictly follow the provisions of:

   • Companies Act, 2013
   • Securities Contracts (Regulation) Act, 1956
   • Securities and Exchange Board of India Act, 1992
   • Depositories Act, 1996
   • SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
   • SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

2. Statutory Approvals: Sancode Technologies is required to obtain all necessary statutory approvals before the allotment of securities.

3. Internal Controls: The company is advised to strengthen its internal controls to monitor trades by the proposed allottees in the company's scrip. This is to ensure compliance with the provisions of Chapter V of SEBI (ICDR) Regulations.

4. Allottee Undertaking: Sancode Technologies should obtain undertakings from the allottees confirming that they will not engage in intra-day trading or any sale in the company's scrip until the allotment date.

5. Listing Application: The company must make a listing application within 20 days from the date of allotment, along with the required documents as specified by the stock exchange.

Implications for Investors

This corporate action could have several implications for current and potential investors:

1. Equity Dilution: The conversion of warrants into equity shares may lead to dilution of existing shareholders' stakes.
2. Capital Infusion: The preferential issue could bring in fresh capital for the company, potentially strengthening its financial position.
3. Promoter Stake: Depending on the allocation between promoters and non-promoters, this issue might alter the promoter holding in the company.

Investors should closely monitor further announcements from Sancode Technologies regarding the final allotment of these warrants and their subsequent conversion into equity shares.

Note: This article is based on the in-principle approval granted by BSE. The final terms and execution of the preferential issue may be subject to changes and additional regulatory approvals.

Sancode Technologies Limited has issued a corrigendum to its Extraordinary General Meeting (EGM) notice, providing additional details on its proposed issuance of convertible warrants worth Rs 5.99 crore. The company aims to expand its operations into new-age technologies, including semiconductors and artificial intelligence.

Key Points of the Corrigendum

1. Warrant Issue: The company plans to issue 11,11,111 convertible warrants on a preferential basis.

2. Fund Utilization: The funds raised will be allocated as follows:

3. Technology Focus: The company intends to venture into semiconductor design and packaging, as well as explore opportunities in Artificial Intelligence Technologies.

4. Contingency Plan: In case of delays or non-approval for the semiconductor project, the funds will be redirected towards other new-age technology products and services, including AI, Machine Learning, Data Science, and Cloud Computing technologies.

Semiconductor (OSAT) Project Details

• Sancode Technologies is progressing with plans to establish a semiconductor chip testing and packaging (OSAT) plant.
• The company has engaged BBS R & Associates LLP (KPMG) and Feedback Advisory for technical feasibility and project report preparation.
• An application has been submitted to the Government of Odisha under its Semiconductor and IT Manufacturing Promotion Policy.

Joint Venture and Collaborations

• A wholly-owned subsidiary, Sancode Semi Pvt Ltd, has been incorporated as the project SPV.
• The company has signed an MOU with Silicon Connect SDN BHD for technical collaboration and know-how transfer.
• Negotiations are ongoing with a Malaysian semiconductor company and an Indian EMS manufacturer for potential joint venture and investment partnerships.

E-Voting Details

• Remote e-voting facility will be available from November 20, 2025 (9:00 A.M. IST) to November 21, 2025 (5:00 P.M. IST).
• Shareholders holding shares as of November 14, 2025, can participate in the e-voting process.
• M/s. Dilip Swarnkar & Associates will act as the scrutinizer for the e-voting process.

This corrigendum provides shareholders with more comprehensive information about the company's expansion plans and the utilization of funds from the proposed warrant issue. Investors should carefully consider these details before making any investment decisions.