Hittco Tools Limited has announced a significant machinery rental agreement with a promoter group entity, marking a strategic move to enhance its operational capabilities. The company disclosed this material event under SEBI regulations on January 19, 2026.

Agreement Details

The machinery rental arrangement involves several key components that demonstrate the company's commitment to expanding its production infrastructure:

Strategic Purpose and Impact

The rental agreement serves multiple operational objectives for Hittco Tools Limited. The company has specifically outlined that the arrangement aims to enhance production capacity and operational efficiency. This strategic decision reflects the management's focus on scaling manufacturing capabilities without significant capital expenditure.

The manufacturing equipment being rented is expected to improve capacity utilization across the company's operations. The management anticipates that this arrangement will have a material impact on the company's operational performance.

Regulatory Compliance

Hittco Tools Limited has made this disclosure pursuant to Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The transaction qualifies as a related party transaction since it involves Hittco Industries Private Limited, which is part of the promoter group.

The company has classified this transaction as material under its Policy on Determination of Materiality of Events, necessitating the formal disclosure to stock exchanges. This transparency ensures that investors and stakeholders are informed about significant operational developments that could impact the company's performance.

Hittco Tools Limited's board of directors held a comprehensive meeting on January 19, 2026, approving multiple strategic corporate actions that will impact the company's capital structure and operational capacity. The meeting, which commenced at 10:00 AM and concluded at 3:00 PM, addressed key matters including preferential allotment, share forfeiture, and board appointments.

Preferential Allotment Details

The board approved the issuance and allotment of up to 4,45,000 equity shares on a preferential basis in accordance with Chapter V of the SEBI ICDR Regulations. The allotment is structured across two categories with specific allocations:

The preferential allotment is subject to approval from regulatory and statutory authorities as well as company shareholders. The board also cancelled the special resolution passed at the 31st Annual General Meeting held on September 30, 2025, regarding the previous preferential allotment approval.

Share Forfeiture Action

The board approved the forfeiture of 2,47,600 partly paid equity shares of face value ₹10.00 each due to non-payment of call money. The forfeited shares belonged to six shareholders, with the largest holdings being:

Following the forfeiture, these shares will be cancelled and the Register of Members will be updated accordingly. The company will make necessary disclosures and filings with statutory authorities in compliance with applicable laws.

Board Appointment and Corporate Governance

Based on recommendations from the Nomination and Remuneration Committee, the board appointed Mr. Ranjan Kotekar (DIN: 02964263) as Additional Independent Director. Mr. Kotekar brings over 10 years of management experience and is described as having a positive, inspiring, and experienced personality.

The board also appointed M/s Manjeet & Associates, Company Secretary in practice, as Scrutinizer for conducting the postal ballot process in a fair and transparent manner.

Machinery Rental Agreement

The company entered into a related party transaction with Hittco Industries Private Limited for machinery rental. The agreement details include:

The arrangement is expected to improve operational efficiency and capacity utilization for the company's manufacturing operations.

Regulatory Compliance

All decisions were made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The board also considered a valuation report from a registered valuer as part of the decision-making process for the preferential allotment.