Lykis Limited , a publicly traded company, has successfully concluded a postal ballot through remote e-voting, with results announced on October 21, 2025. The shareholders have given their approval to two significant resolutions, demonstrating strong support for the company's proposed actions.

Voting Results

The postal ballot saw a participation rate of 68.83% of the total outstanding shares, which amounts to 19,375,155. Both resolutions passed with an overwhelming majority of 97.85% votes in favor. Here's a breakdown of the voting results:

Key Resolutions

Material Related Party Transaction

An ordinary resolution was passed approving a material related party transaction with Lykis Exports LLC. This approval allows the company to engage in significant business dealings with its related entity, potentially enhancing operational synergies.

Investment and Financial Powers

A special resolution was approved, authorizing the company to make investments, provide loans, offer guarantees, and furnish security beyond the statutory limits set under Section 186 of the Companies Act, 2013. This expanded financial flexibility could enable Lykis Limited to pursue strategic opportunities more effectively.

Postal Ballot Process

The postal ballot notice was dispatched to shareholders on September 20, 2025, with September 12, 2025 set as the record date. The company engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process, ensuring a secure and efficient voting mechanism.

Komal Birmiwala, a Practicing Company Secretary, served as the scrutinizer for the voting process, overseeing the integrity and accuracy of the ballot.

Implications

The strong shareholder support for both resolutions indicates confidence in the company's management and strategic direction. The approval for related party transactions and enhanced financial powers could potentially lead to new business opportunities and improved operational flexibility for Lykis Limited.

These developments may be of particular interest to investors and market analysts monitoring the company's corporate governance practices and strategic initiatives.

Lykis Limited's successful completion of this postal ballot process demonstrates its commitment to shareholder engagement and compliance with regulatory requirements, including those set by the Securities and Exchange Board of India (SEBI) and the Companies Act, 2013.

Lykis Limited , a Mumbai-based company, has issued a postal ballot notice seeking shareholder approval for two significant resolutions that could impact its financial operations and investment capabilities.

Related Party Transaction with Lykis Exports LLC

The first resolution involves approving a material related party transaction with Lykis Exports LLC, a wholly owned subsidiary of Lykis Limited. The company proposes to provide financial assistance of up to ₹90.00 crores to meet Lykis Exports LLC's working capital requirements. This transaction represents 29.86% of Lykis Limited's annual consolidated turnover.

Lykis Limited plans to extend this support through a guarantee amounting to ₹90.00 crores, which may be issued in one or more tranches. The company has arranged funds through internal resources, borrowings from scheduled commercial banks, and management support.

Increase in Investment Limits

The second resolution seeks shareholder approval to increase the company's investment limits under Section 186 of the Companies Act, 2013. Lykis Limited proposes to raise the limit to ₹90.00 crores, exceeding the statutory thresholds for loans, guarantees, and securities investments.

This increase aims to provide greater financial flexibility and enable optimal financial structuring for the company. If approved, it will allow Lykis Limited to acquire securities of other body corporates beyond the current statutory limits.

Voting Process and Timeline

The company has engaged the National Securities Depository Limited (NSDL) to facilitate the e-voting process. Shareholders can cast their votes electronically from September 21 to October 20. Ms. Komal Birmiwala, a Practicing Company Secretary, has been appointed as the scrutinizer for the postal ballot process.

Financial Implications

The proposed related party transaction and increased investment limits could significantly impact Lykis Limited's financial position and operations. The company's board believes these measures will provide greater financial flexibility and support the working capital needs of its subsidiary.

Lykis Limited's management has provided justification for the related party transaction, citing Lykis Exports LLC's need for working capital to conduct its business operations. The loan terms include a one-year tenure with an 8% per annum interest rate charged by the scheduled commercial bank.

Shareholders are advised to carefully consider the implications of these resolutions before casting their votes. The results of the postal ballot are expected to be announced by October 21.