Bazel International Reviews Subsidiary Progress & Warrants

Bazel International Limited's board of directors held a meeting to discuss critical business developments and compliance matters. The registered non-banking financial company addressed key operational updates regarding its subsidiary and reviewed the status of share warrant collections.

Subsidiary Operations and Strategic Transition

The board conducted a comprehensive review of Arur Footwear Limited's operational performance and transition progress. The subsidiary has undergone a strategic transformation to operate as a focused footwear business under its new corporate identity.

Parameter	Status
Business Focus	Focused footwear operations
Corporate Identity	Arur Footwear Limited
Operational Areas	Manufacturing, brand development
Regulatory Status	Approvals received and in process

The board reviewed progress made in aligning operations, manufacturing capabilities, and brand development activities with this strategic focus. Management provided updates on regulatory approvals already received and the status of necessary approvals and licenses currently under process.

SOP Fines Resolution and Compliance Updates

Significant developments were noted regarding SOP (Surveillance and Observation Post) fines imposed on the subsidiary. BSE Limited has withdrawn all SOP fines levied on Arur Footwear Limited for the period prior to July 1, 2024, following the approval of the Resolution Plan by the NCLT Chandigarh Bench.

Period	Action	Amount
Prior to July 1, 2024	All SOP fines withdrawn	Complete waiver
September 2024 quarter	Partial waiver granted	₹26.08 lakh net payable
Payment Status	Remitted under protest	Amount paid with reservations

For the quarter ended September 2024, BSE Limited granted a partial waiver of SOP fines, resulting in a net payable amount of ₹26.08 lakh (inclusive of GST). The subsidiary has remitted this amount under protest while reserving its right to pursue further remedies and continuing to make appropriate representations in the matter.

Share Warrant Status and Fund Collection

The board reviewed the status of funds received against 24,60,928 share warrants allotted on a preferential basis. These warrants were issued pursuant to the board meeting held on February 12, 2025, in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Component	Amount (₹)	Status
Upfront consideration (25%)	Not specified	Received
Balance consideration (75%)	7,77,40,715.52	Total due
Amount received	6,64,90,696.00	Collected
Outstanding amount	1,12,50,019.52	Pending recovery

The company had received 25% of the total consideration upfront at the time of warrant issuance, as mandated under SEBI ICDR Regulations. Out of the balance 75% consideration amounting to ₹7.77 crore, the company has received ₹6.65 crore from allottees, leaving ₹1.13 crore outstanding.

Management Directives and Compliance

The board directed management to take necessary steps for recovery of the outstanding warrant consideration amount within prescribed timelines. This directive emphasizes ensuring compliance with applicable provisions of SEBI ICDR Regulations and other applicable laws.

The board meeting addressed critical operational and financial matters that impact both the parent company and its subsidiary's strategic direction in the footwear sector.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.47%	-4.04%	-11.54%	-2.58%	-34.29%	+393.14%

Bazel International Limited , a registered non-banking financial company, has announced significant corporate actions aimed at strengthening its capital structure. The company's board of directors has approved two key measures: a preferential allotment of equity shares and an increase in authorized share capital.

Preferential Allotment Details

The board has given the green light for a preferential allotment of 10,69,189 equity shares, priced at Rs 66.95 per share. This move is designed to convert unsecured loans totaling Rs 7.16 crore into equity. The beneficiaries of this allotment are:

Allottee	Loan Amount (Rs)	Shares Allotted
Panafic Industries Limited	2,05,40,025	3,06,797
Chaser Financial Services Private Limited	5,10,42,146	7,62,392

The issue price of Rs 66.95 includes a premium of Rs 56.95 per share over the face value of Rs 10. This allotment is in accordance with Sections 42, 62(1)(c), and 62(3) of the Companies Act, 2013, as well as relevant SEBI regulations.

Authorized Share Capital Increase

In addition to the share allotment, Bazel International has partially implemented a previously approved increase in its authorized share capital. The changes are as follows:

Previous authorized capital: Rs 3.5 crore (35,00,000 equity shares of Rs 10 each)
New authorized capital: Rs 4 crore (40,00,000 equity shares of Rs 10 each)

This increase of Rs 50 lakh, achieved by creating 5,00,000 additional equity shares, falls within the overall authorized capital limit of Rs 75 crore that was previously approved by shareholders.

Regulatory Compliance and Next Steps

The company has confirmed that these actions comply with:

SEBI (ICDR) Regulations, 2018
SEBI (LODR) Regulations, 2015
Shareholder approval granted at the 43rd AGM held on September 29, 2025
In-principle approval from BSE Limited received on November 24, 2025

Bazel International will now proceed with filing the allotment details with the stock exchange, initiating necessary corporate actions with NSDL/CDSL, and applying for listing and trading approval as per SEBI regulations.

These strategic moves by Bazel International Limited appear to be aimed at improving its capital structure by converting debt to equity, potentially reducing interest burden and strengthening its balance sheet. The increase in authorized share capital also provides the company with additional flexibility for future capital raising activities, if required.