Emmforce Autotech Limited , a leading automotive component manufacturer, has issued a postal ballot notice seeking shareholder approval for material related party transactions totaling Rs 101.5 crores. The company aims to enter into transactions with three related parties, including its subsidiary, for various business purposes.

Key Transaction Details

Transaction Rationale and Voting Process

The proposed transactions exceed the threshold of 10% of the company's annual consolidated turnover, as per SEBI listing regulations. Emmforce Autotech states that these transactions are in the ordinary course of business and at arm's length basis.

Key points of the proposal include:

1. Transactions with Emmbros Automotives aim to benefit from lower logistic costs for export customers.
2. PROSPEEDWAYS LLC serves as a warehousing company for customers requiring indirect imports or warehousing facilities.
3. Emmforce Mobility Solutions, the company's subsidiary, represents a backward integration for Emmforce Autotech's forging division.

The e-voting period for shareholders runs from October 31, 2025, to November 29, 2025. Results will be announced by December 1, 2025.

Management Interests

Key promoter directors, Ashok Mehta and Neetu Mehta, have interests in all related parties with varying shareholdings:

• Emmbros Automotives: Ashok Mehta (18.09%), Neetu Mehta (81.91%)
• PROSPEEDWAYS LLC: Ashok Mehta (50%), Neetu Mehta (50%)
• Emmforce Mobility Solutions: Ashok Mehta (10%), Neetu Mehta (10%)

The proposed transactions have been approved by the audit committee and recommended by the Board of Directors. Shareholders are advised to review the detailed information provided in the postal ballot notice before casting their votes.

Emmforce Autotech Limited has announced a significant business development, securing a long-term supply contract with a USA-based Original Equipment Manufacturer (OEM). This contract marks a notable expansion in the company's international business operations.

Contract Details

Key Points

• The contract represents a domestic supply arrangement, despite the international client.
• Emmforce Autotech's promoter group has no interest in the awarding entity.
• The transaction does not fall under related party transactions.

Regulatory Compliance

Emmforce Autotech Limited has duly informed the Bombay Stock Exchange about this development, adhering to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided a detailed disclosure as per SEBI Circular No SEBI/HO/CFD-poD1/P/CIR/2023/123 dated July 13, 2023.

Implications

This contract signifies a positive development for Emmforce Autotech, potentially boosting its revenue and expanding its international clientele. The long-term nature of the supply order suggests a stable business relationship, which could contribute to the company's growth and market position in the automotive components sector.

Investors and market watchers may view this development as an indicator of Emmforce Autotech's competitive capabilities in the global automotive supply chain. The actual impact, however, will depend on successful execution of the contract.