Sundaram Multi Pap , a manufacturer of exercise books and paper stationery, held an Extraordinary General Meeting (EGM) to approve a significant preferential share issue. The meeting, conducted via video conference, saw the company's board seeking shareholder approval for the issuance of up to 7.04 crore equity shares at Rs 3.35 per share, aiming to raise Rs 23.58 crore.

Key Details of the Preferential Issue

The preferential issue is designed as a strategic move to acquire a majority stake in Sundaram Land and Assets Private Limited. Here are the crucial points:

• Issue Size: Up to 7,04,00,000 fully paid-up equity shares
• Issue Price: Rs 3.35 per share (including a premium of Rs 2.35)
• Total Fund Raise: Rs 23,58,40,000
• Purpose: Acquisition of 2.75 crore equity shares (52.38% stake) in Sundaram Land and Assets Private Limited
• Allottees: Non-promoter shareholders of Sundaram Land and Assets Private Limited
• Consideration: Other than cash (share swap)

EGM Proceedings

The EGM, chaired by Chairman & Managing Director Amrut P. Shah, commenced at 11:00 AM and concluded at 11:40 AM. Key highlights of the meeting include:

• Attendance: All directors, including independent directors, were present along with key management personnel and auditors.
• Voting Process: Remote e-voting was conducted, with additional e-voting facility provided during the meeting.
• Resolution Type: The share issuance was proposed as a special resolution under special business.
• Scrutinizer: Mr. Gaurang Shah of M/s. GR Shah and Associates was appointed to oversee the voting process.

Management Commentary

Mr. Krunal S. Shah, Whole-Time Director, provided a brief business outlook and explained the rationale behind the preferential issue. The management emphasized that the issue price is in compliance with SEBI ICDR Regulations.

Implications for Investors

This preferential issue represents a significant corporate action for Sundaram MultiPap Limited. The acquisition of a majority stake in Sundaram Land and Assets Private Limited suggests a strategic expansion or diversification move by the company. Shareholders should note that this share issuance may lead to equity dilution, but it also provides the company with assets that could potentially enhance its business portfolio.

Investors are advised to closely monitor the company's future announcements regarding the completion of this transaction and its impact on the company's financials and operations.

Note: The share price mentioned in this article is specific to the preferential issue and may not reflect the current market price of Sundaram MultiPap Limited's shares.

Sundaram Multi Pap Limited has issued a corrigendum to its Extraordinary General Meeting (EGM) notice, providing clarifications and additional information regarding its proposed preferential issue of equity shares. The company aims to issue 7.04 crore equity shares on a preferential basis, with the EGM scheduled for November 12, 2025, through video conference.

Key Updates in the Corrigendum

1. Share Issuance Details:

   • The company will issue 7,04,00,000 (Seven Crores Four Lakhs) equity shares.
   • The term 'rounded off' has been removed from all instances in the EGM notice.

2. Relevant Date and Floor Price:

   • The relevant date for determining the floor price is October 13, 2025, being the working day preceding 30 days prior to the EGM date.

3. Shareholding Pattern Changes:

   • Post-preferential issue, the promoter shareholding will decrease from 31.11% to 27.09%.
   • Public shareholding will increase from 68.89% to 72.91%.

Detailed Shareholding Structure

Additional Clarifications

1. Non-Participation of Insiders:

   • The company confirmed that none of its current promoters, directors, key managerial personnel, or senior management will participate directly or indirectly in the proposed preferential allotment.

2. Allottee Details:

   • The corrigendum lists 56 proposed allottees, all classified as non-promoter/public investors.
   • New Age Capital Partners, represented by Dr. V. V. L. N. Sastry, is set to receive the largest allocation of 64,00,000 shares, which will constitute 1.18% of the post-issue share capital.

3. Compliance and Certifications:

   • A certificate from ACS M/s. G R Shah & Associates, Practicing Company Secretary, confirming compliance with ICDR Regulations, is available on the company's website.
   • The company has declared compliance with continuous listing conditions and eligibility for the preferential issue under SEBI ICDR Regulations.

4. Regulatory Assurances:

   • Sundaram Multi Pap affirmed that neither the company nor its directors/promoters have been declared willful defaulters or fugitive economic offenders.
   • The company also confirmed that none of its promoters or directors are fraudulent borrowers.

This corrigendum comes in response to clarifications requested by the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) following Sundaram Multi Pap's applications for in-principle approval of the preferential issue. The updated information aims to provide greater transparency and compliance with regulatory requirements for the upcoming EGM and the proposed share allotment.

Investors and stakeholders are advised to review the full corrigendum, which is available on the company's website and the stock exchanges, for a comprehensive understanding of the changes and additional disclosures made by Sundaram Multi Pap Limited.