SMT Engineering Limited (formerly known as Adarsh Mercantile Limited) has scheduled an Extraordinary General Meeting (EGM) for January 6, 2026, to seek shareholder approval for significant corporate actions including a preferential issue worth Rs 348.75 crore and an increase in authorized share capital.

EGM Details and Timeline

The company has announced that the EGM will be held on Tuesday, January 6, 2026, at 12:30 PM (IST) through Video Conferencing (VC)/Other Audio-Visual Means (OAVM). The notice for the EGM was dispatched via email on December 12, 2025, to all members whose email IDs are registered with the company, depositories, or the Registrar and Transfer Agent.

Preferential Issue Details

The board has approved the issuance of up to 15,50,000 equity shares at Rs 225.00 per share on a preferential basis to non-promoter public category investors. This move is expected to raise up to Rs 348.75 crore. The preferential issue is subject to shareholder and stock exchange approvals and will be conducted in accordance with SEBI regulations.

Authorized Share Capital Increase

SMT Engineering's board has also approved an increase in the company's authorized share capital from Rs 17.00 crore to Rs 18.10 crore, subject to shareholder approval. This increase will facilitate the issuance of additional equity shares as part of the preferential issue.

Proposed Allottee Details

The preferential issue involves several non-promoter public category investors with detailed allocation as follows:

Fund Utilization and Corporate Purpose

The company plans to utilize the raised funds for growth objectives, including investments in wholly-owned subsidiaries, capital expenditures, and working capital requirements. Up to 25% of the issue proceeds will be allocated for general corporate purposes, providing flexibility for ongoing business operations and strategic initiatives.

Regulatory Compliance and Approvals

The relevant date for price determination under SEBI (ICDR) Regulations has been set as December 5, 2025. The company has obtained necessary certifications from practicing company secretaries confirming compliance with SEBI regulations. M/s. Nikhil Dhanotiya & Associates has been appointed as the scrutinizer for the e-voting process.

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

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.