SMT Engineering Limited (formerly known as Adarsh Mercantile Limited) successfully concluded its Extraordinary General Meeting (EGM) on January 6, 2026, with shareholders unanimously approving all proposed resolutions including a preferential issue worth Rs 348.75 crore and an increase in authorized share capital.

EGM Outcomes and Voting Results

The EGM held on Tuesday, January 6, 2026, at 12:30 PM through Video Conferencing achieved significant shareholder participation with 84.98% voter turnout. All resolutions received unanimous approval with 100% votes in favor and zero votes against.

Resolution 1: Authorized Share Capital Increase

Shareholders approved the increase in authorized share capital from Rs 17.00 crore to Rs 18.10 crore. The resolution received overwhelming support across all categories of shareholders.

Resolution 2: Preferential Issue Approval

The special resolution for issuing up to 15,50,000 equity shares at Rs 225.00 per share on a preferential basis to non-promoter public category investors was unanimously approved. This preferential issue will raise up to Rs 348.75 crore for the company.

Scrutinizer Report and Compliance

Nikhil Dhanotiya of Nikhil Dhanotiya & Associates served as the scrutinizer for the e-voting process. The remote e-voting period was conducted from January 3, 2026 (09:00 AM) to January 5, 2026 (05:00 PM), with the record date set as December 30, 2025.

Fund Utilization Strategy

The approved preferential issue proceeds will be utilized for growth objectives including investments in wholly-owned subsidiaries, capital expenditures, and working capital requirements. Up to 25% of the issue proceeds are allocated for general corporate purposes, providing operational flexibility.

Regulatory Framework

The preferential issue was conducted in accordance with SEBI (ICDR) Regulations, with the relevant date for price determination set as December 5, 2025. The company obtained necessary regulatory approvals and compliance certifications from practicing company secretaries.

These approved corporate actions represent SMT Engineering's strategic initiative to strengthen its capital base and support long-term growth objectives while maintaining full regulatory compliance.

SMT Engineering Limited has announced a significant change in its subsidiary's leadership, appointing a new Chief Financial Officer (CFO) to steer its financial strategy. This move underscores the company's commitment to strengthening its financial management and driving growth.

Key Appointment Details

Professional Background

Mr. Yash Patel brings a wealth of financial expertise to his new role:

• Qualification: Associate Member of the Institute of Chartered Accountants of India
• Specialization: Finance and strategy management
• Key Focus Areas:
  • Supporting business growth
  • Implementing financial systems
  • Optimizing business profitability

Corporate Governance and Transparency

SMT Engineering Limited has promptly disclosed this appointment in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This transparency ensures that shareholders and stakeholders are kept informed about significant changes within the company and its subsidiaries.

Implications for SMT Engineering and Sai Machine Tools

The appointment of Mr. Patel as CFO of Sai Machine Tools Private Limited may bring fresh perspectives to the subsidiary's financial strategies. His expertise in finance and strategy management could potentially contribute to:

1. Enhanced financial planning and analysis
2. Improved implementation of financial systems
3. Strategic initiatives aimed at optimizing profitability

As Sai Machine Tools is a material subsidiary of SMT Engineering, this appointment may have broader implications for the parent company's overall financial health and strategic direction.

Looking Ahead

Stakeholders will be keen to observe how Mr. Patel's expertise influences Sai Machine Tools' financial performance and, by extension, contributes to SMT Engineering's growth trajectory in the coming years.

SMT Engineering Limited continues to demonstrate its commitment to strong financial leadership across its corporate structure, positioning itself for potential growth and enhanced operational efficiency in the competitive engineering sector.