Sunshield Chemicals Limited has announced significant corporate decisions following its Board of Directors meeting held on July 31, 2025. The company has approved a fresh rights issue and restructured its key board committees, signaling important changes in its financial and governance strategies.

Rights Issue Approval

The Board of Directors has given the green light to a rights issue aimed at raising up to Rs. 150.00 crores through the issuance of equity shares. This decision comes after withdrawing a previous draft letter of offer dated September 30, 2024, and superseding a rights issue approval granted on August 9, 2024. The fresh rights issue will be offered to eligible shareholders, with the specifics to be determined by a newly authorized Rights Issue Committee.

Key points of the rights issue include:

• Maximum fund-raising target: Rs. 150.00 crores
• Offered to: Eligible equity shareholders as of a to-be-determined Record Date
• Compliance: In accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018

The Rights Issue Committee has been empowered to decide on crucial aspects such as:

• Issue price
• Entitlement ratio
• Record date
• Timing of the issue
• Appointment of intermediaries
• Other terms and conditions

Board Committee Restructuring

Effective October 21, 2025, Sunshield Chemicals will implement a reconstitution of three key committees:

1. Audit Committee
2. Nomination and Remuneration Committee
3. Stakeholders Relationship Committee

The restructured committees will be composed as follows:

Notably, Mr. Jeet Malhotra, the Managing Director & CEO, will be a permanent invitee to the Audit Committee meetings.

Financial Results and Trading Window

The Board has also approved the unaudited financial results for the quarter ended June 30, 2025. The company's auditors have issued an unmodified report on these results. Following this announcement, the trading window for dealing in the company's securities will reopen 48 hours after the declaration of the financial results.

These strategic decisions reflect Sunshield Chemicals' efforts to strengthen its financial position and enhance its corporate governance structure. Investors and market watchers will be keenly observing how these changes impact the company's future performance and market standing.

Sunshield Chemicals Limited has announced plans to withdraw its Draft Letter of Offer for a rights issue and submit a fresh application under recently amended SEBI regulations. The company aims to take advantage of the simplified process introduced by SEBI, which became effective on April 7, 2025.

Background of the Rights Issue

The company's Board of Directors had initially approved raising up to ₹200.00 crores through a rights issue of fully paid equity shares with a face value of ₹10.00 each on August 9, 2024. Following this decision, Sunshield Chemicals filed a Draft Letter of Offer (DLOF) with SEBI on September 30, 2024.

Reasons for Withdrawal and Refiling

The decision to withdraw and refile the application comes in response to SEBI's introduction of amended regulations for rights issues on March 8, 2025. These new regulations, which took effect on April 7, 2025, are designed to streamline the rights issue process, making it faster, more efficient, and cost-effective for companies.

Upcoming Board Meeting

Sunshield Chemicals has scheduled a Board meeting for July 31, 2025, to address the following key points:

1. Withdraw the Draft Letter of Offer dated September 30, 2024, filed under the previous SEBI regulations.
2. Supersede the Board meeting approval from August 9, 2024, and pass a fresh resolution for the rights issue under the new regulations.

Clarification on the Rights Issue

The company has emphasized that this move does not involve any additional equity share issuance. Instead, it is a procedural change to align with the new regulatory framework while pursuing the previously announced rights issue.

Impact on Shareholders

By refiling under the new regulations, Sunshield Chemicals aims to benefit from a more streamlined process, which could potentially lead to a faster and more cost-effective rights issue. This approach may ultimately benefit the company's shareholders by reducing administrative burdens and associated costs.

Investors and stakeholders are advised to monitor further announcements from the company regarding the progress of the rights issue under the new regulatory framework.