Sundaram Multi Pap Limited, a manufacturer of exercise notebooks and paper stationery, has reported a net loss for the quarter ended September 30, 2025, while also receiving shareholder approval for a significant preferential share issue.

Financial Performance

For the second quarter of fiscal year 2026, Sundaram MultiPap posted a net loss of Rs 83.01 lacs, a stark contrast to the net profit of Rs 44.38 lacs reported in the previous quarter. The company's total income decreased to Rs 2,603.65 lacs from Rs 4,072.31 lacs in the prior quarter.

Here's a breakdown of the key financial metrics for Q2 FY2026:

For the half-year period ended September 30, 2025, the company reported a net loss of Rs 158.28 lacs.

Operational Highlights

The company's board of directors approved the unaudited standalone financial results in a meeting held on November 13, 2025. Sundaram MultiPap primarily operates in the exercise notebook paper segment.

Shareholder Approval for Preferential Share Issue

In a separate development, shareholders of Sundaram MultiPap have approved the issuance of 7.04 crore equity shares on a preferential basis. This approval was granted during an Extraordinary General Meeting (EGM) held on November 12, 2025.

The preferential issue is aimed at non-promoter shareholders of Sundaram Land and Assets Private Limited. Through this issuance, Sundaram MultiPap plans to acquire a 52.38% stake in the target company.

EGM Voting Results

The resolution for the preferential share issue received overwhelming support from shareholders:

• 98.30% of the total votes cast were in favor of the resolution
• Only 1.70% of the votes were against the proposal
• The total number of valid votes cast was 16,20,36,028

Auditor's Observations

The company's auditors have noted concerns regarding trade receivables, highlighting the need for confirmations and expressing that inadequate provisions have been made for long-outstanding receivables. This qualification was also present in the previous year's financial statements.

Looking Ahead

While Sundaram MultiPap faces challenges in its financial performance, the approved preferential share issue may provide new opportunities for growth and expansion. The company will need to address the auditor's concerns regarding trade receivables to improve its financial position and reporting quality.

Investors and stakeholders will be watching closely to see how the company navigates these challenges and capitalizes on the newly approved share issuance in the coming quarters.

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.