Desh Rakshak Aushdhalaya Limited , a manufacturer of Ayurvedic and herbal products, has announced significant corporate decisions following its recent board meeting. The company has postponed its decision on raising funds through convertible warrants and approved revisions in managerial remuneration for key directors.

Key Developments

Fund Raising Decision Postponed

The board has delayed its decision on raising funds through the creation, offer, and allotment of warrants convertible into equity shares via private offerings or preferential issues.

Managerial Remuneration Revisions

The board has approved increases in managerial remuneration for three directors, subject to shareholder approval at the upcoming 44th Annual General Meeting (AGM):

• Mr. Tosh Kumar Jain (Managing Director)
• Mr. Arihant Kumar Jain (Whole-time Director)
• Mrs. Monika Jain (Whole-time Director)

Remuneration Threshold

The approved remuneration increases will exceed 11% of the company's net profits, necessitating shareholder approval.

Financial Context

To provide context for these decisions, let's examine the company's recent financial performance:

The company has shown modest growth in revenue and a more substantial increase in net profit and earnings per share (EPS) compared to the previous year. This improved financial performance may have influenced the board's decision to revise managerial remuneration.

Implications and Outlook

The postponement of the decision on warrant issuance suggests that the company is carefully considering its funding options. This prudent approach aligns with the current economic climate and may indicate that the board is exploring alternative strategies or awaiting more favorable market conditions.

The approval of increased managerial remuneration, exceeding 11% of net profits, reflects confidence in the leadership team. However, it also underscores the importance of shareholder approval, highlighting the company's commitment to corporate governance and transparency.

As Desh Rakshak Aushdhalaya Limited navigates these corporate actions, stakeholders will be keenly watching the outcome of the upcoming AGM and any future decisions regarding fund-raising initiatives. The company's ability to balance growth aspirations with prudent financial management will be crucial in the coming months.

Desh Rakshak Aushdhalaya Limited , a manufacturer of Ayurvedic and herbal products, has received trading approval from BSE Limited for its recent preferential issue of equity shares. This development marks a significant step for the company in its capital raising efforts.

Key Details of the Preferential Issue

The newly issued shares will rank pari-passu with the existing equity shares of the company, ensuring equal rights for all shareholders.

Lock-in Details

The preferential issue comes with specific lock-in periods for the allotted shares:

These lock-in periods are in line with regulatory requirements for preferential issues and aim to ensure stability in the shareholding structure.

Regulatory Compliance

Desh Rakshak Aushdhalaya Limited has adhered to the necessary regulatory requirements in this process. The company obtained the trading approval in accordance with SEBI regulations, including the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Company Background

Established in 1901, Desh Rakshak Aushdhalaya Limited (CIN: L33119UR1981PLC006092) is based in Haridwar, Uttarakhand. The company specializes in the manufacture of Ayurvedic and herbal products, contributing to India's traditional medicine sector.

This preferential issue and subsequent trading approval may provide Desh Rakshak Aushdhalaya with additional capital to support its operations and growth strategies in the Ayurvedic and herbal products market.