MAC Hotels Limited's board of directors has approved an ambitious fundraising and expansion strategy during its meeting held on February 19, 2026. The comprehensive plan includes preferential allotment of securities worth Rs 54.76 crore and strategic diversification into the chemical industry through an acquisition.

Preferential Issue Details

The board approved the issuance of securities through preferential allotment to 65 identified investors, comprising both promoters and non-promoter entities. The fundraising structure includes two components with specific pricing and conversion terms.

For the convertible warrants, investors must pay 25% of the issue price (Rs 11.25 per warrant) upfront, totaling Rs 8,28,98,010, with the remaining 75% (Rs 33.75) payable upon conversion.

Shareholding Pattern Changes

The preferential issue will significantly alter the company's shareholding structure upon full conversion of warrants. The post-allotment scenario shows a redistribution of ownership between promoter and public categories.

Capital Structure Enhancement

To accommodate the proposed issuance, the board approved doubling the authorized share capital from Rs 9,00,00,000 to Rs 18,00,00,000. This expansion involves increasing the authorized equity shares from 90,00,000 to 1,80,00,000 shares of Rs 10 each, requiring consequential amendments to the company's Memorandum of Association.

Strategic Acquisition Initiative

The board granted provisional approval for acquiring approximately 25% stake in Herald Technocraft Private Limited (HTPL), a chemical industry company incorporated on August 23, 2020. This acquisition represents MAC Hotels' strategic diversification beyond its traditional hospitality business.

HTTP's financial performance shows significant growth, with turnover increasing from Rs 849.71 thousand in 2024 to Rs 11,305.84 thousand in 2025, while 2023 recorded zero turnover.

Business Diversification Strategy

Alongside the acquisition, the board approved expanding the company's main business objects to include chemical industry operations. The proposed addition encompasses manufacturing, trading, importing, exporting, and dealing in various chemical products including:

• Diamonds, chemicals, and chemical compounds (organic and inorganic)
• Heavy chemicals, oils, gases, and mineral products
• Agricultural and horticultural chemicals, fertilizers
• Pharmaceutical chemicals, APIs, and intermediates
• Dyestuffs, pigments, solvents, and coating materials
• Bio-chemicals and specialized chemical formulations

Regulatory Approvals and Timeline

The board has scheduled an Extraordinary General Meeting for March 21, 2026, at 12:15 p.m. (IST) to seek shareholder approval for all proposed resolutions. The preferential issue and other proposals remain subject to regulatory approvals from SEBI and other applicable authorities, along with compliance with the Companies Act, 2013, and SEBI regulations.

The board meeting, chaired by Managing Director Edgar M R Cotta, commenced at 7:00 p.m. and concluded at 8:10 p.m. on February 19, 2026, marking a significant milestone in the company's expansion strategy.

MAC Hotels Limited has officially notified BSE Limited about its upcoming board meeting scheduled for February 19, 2026, to consider significant corporate restructuring proposals including authorized capital increase and fund raising initiatives through preferential issue.

Board Meeting Agenda

The company's board of directors will convene on Thursday, February 19, 2026, to deliberate on key proposals that could reshape the company's capital structure. The meeting agenda includes comprehensive discussions on strategic financial decisions as outlined in the official intimation dated February 13, 2026.

Capital Structure Initiatives

The board will evaluate proposals for increasing the company's authorized capital, a move that typically indicates expansion plans or strategic growth initiatives. Additionally, the directors will consider raising funds through preferential issue, which involves offering securities to select investors at predetermined terms.

These proposals are subject to obtaining necessary regulatory and statutory approvals, including consent from the company's shareholders. The preferential issue mechanism allows companies to raise capital efficiently while maintaining control over the investor selection process.

Trading Window Restrictions

In compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015, MAC Hotels Limited has implemented a trading window closure for company securities. The restriction period extends from February 13, 2026, to February 21, 2026, both days inclusive.

Company Information and Regulatory Compliance

The announcement was made pursuant to Regulation 29(1) of the SEBI Listing Regulations, demonstrating the company's commitment to transparent corporate governance practices. The notification was signed by Edgar M R Cotta, Managing Director, with DIN: 00124357, and communicated to BSE Limited.

The company has requested BSE Limited to take note of these developments and maintain appropriate records of the board meeting intimation and associated trading restrictions. This formal communication ensures all stakeholders are informed about the upcoming strategic decisions that may impact the company's capital structure.