Eraaya Lifespaces Withdraws BSE Preferential Issue Application After EGM Rejection

Eraaya Lifespaces Limited (formerly Justride Enterprises Limited) has withdrawn its application to BSE for in-principle approval of a preferential equity share issue, following the rejection of related special resolutions at its Extraordinary General Meeting (EGM) held on December 9. The company informed BSE about the withdrawal on December 19.

Application Withdrawal Details

The withdrawn application sought BSE's in-principle approval under Regulation 28(1) of SEBI (LODR) Regulations, 2015 for the proposed issue and allotment of equity shares on preferential basis to non-promoter public category investors.

Parameter	Details
Shares Proposed	28,60,412 equity shares
Face Value	₹1.00 per share
Issue Type	Preferential basis
Category	Non-Promoter, Public
Withdrawal Date	December 19

EGM Voting Results Overview

The December 9 EGM witnessed significant shareholder participation with 25,525 shareholders eligible to vote as of the December 2 cut-off date. The total shareholding stood at 19,06,94,160 shares, with voting conducted through remote e-voting and during the meeting itself.

Resolution Type	Item	Description	Votes in Favor (%)	Status
Special	Item 1	Preferential Equity Share Issuance	72.44%	Not Approved
Special	Item 2	Board Borrowing Authorization	72.42%	Not Approved
Special	Item 3	Loan and Guarantee Provisions	72.42%	Not Approved
Special	Item 4	Investment Ceiling Limits	72.42%	Not Approved
Special	Item 5	Related Party Transaction Limits	72.42%	Not Approved
Special	Item 6	Loan to Equity Conversion	72.42%	Not Approved
Ordinary	Item 7	Intragroup Service Charges	72.44%	Approved

Special Resolutions Rejected

Despite receiving over 72% votes in favor, all six special resolutions failed to meet the requisite threshold for approval under the Companies Act, 2013. The rejected proposals included critical corporate governance and financial restructuring measures, with Item 1 specifically covering the preferential equity share issuance that formed the basis of the BSE application.

Each special resolution received 11,59,77,108 votes in favor through remote e-voting and an additional 31,280 votes during the meeting, while facing 4,41,76,871 dissenting votes.

Approved Resolution

The only successful resolution was Item 7, an ordinary resolution for "Approval for Recoupment of Intragroup Service Charges from Its Subsidiaries and Step-Down Subsidiaries." This resolution secured 72.44% votes in favor, meeting the required majority threshold for ordinary resolutions.

Regulatory Compliance

The remote e-voting facility was provided by National Securities Depository Limited (NSDL) from December 6 to December 8. Shubhangi Agarwal Associates, practicing company secretaries, served as scrutinizers to ensure fair and transparent voting processes. The voting results were declared on December 11, following which Eraaya Lifespaces proceeded to withdraw its BSE application.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.27%	+16.95%	+4.91%	-6.17%	-62.60%	+5,601.39%

Eraaya Lifespaces Limited has issued an urgent disclosure to its stakeholders, alerting them to unauthorized communications and legal maneuvers by certain Foreign Portfolio Investors (FPIs). The company, which operates in the real estate sector, finds itself embroiled in a complex situation involving litigation and alleged misuse of investor data.

Key Developments

Legal Disputes: Eraaya Lifespaces is currently facing litigation from FPIs, who are bondholders of the company, in the UK Court.
Non-Jurisdictional Proceedings: These FPIs have initiated what Eraaya Lifespaces describes as "false, fabricated, and non-jurisdictional proceedings" in various civil courts in Delhi.
Data Privacy Concerns: The company alleges that investor contact details have been improperly accessed and used to circulate unauthorized communications.
Market Perception: Eraaya Lifespaces claims these actions are attempts to create unwarranted negative perceptions about the company and its subsidiaries.

Company's Response

Eraaya Lifespaces has taken a firm stance on these developments:

Operational Stability: The company asserts that its operations remain fully stable and uninterrupted despite the ongoing disputes.
Investor Advisory: Shareholders and market participants are urged to rely exclusively on official disclosures issued by Eraaya Lifespaces and its subsidiaries.
Regulatory Action: The company is escalating these matters to appropriate authorities, demonstrating its commitment to resolving the situation through proper channels.
Governance Commitment: Eraaya Lifespaces reaffirms its dedication to strong governance practices and the protection of stakeholder interests.

Implications for Investors

This situation highlights the importance of due diligence and reliance on official company communications. Investors should:

Exercise caution when receiving unsolicited communications about Eraaya Lifespaces.
Verify information through official channels such as stock exchange filings and company websites.
Be aware of the potential impact of legal disputes on company valuation and market perception.

Eraaya Lifespaces' proactive disclosure aligns with regulatory requirements and demonstrates transparency in addressing complex corporate challenges. As the situation unfolds, stakeholders should stay informed through official company announcements and regulatory filings.

The company's ability to navigate these legal and communication challenges may have significant implications for its reputation and investor relations.