MRC Agrotech Limited has announced the execution of a strategic Memorandum of Understanding (MoU) with ME Technology Trading Ltd, marking a significant step in the company's technology integration initiatives. The collaboration aims to focus on agri-technology solutions including AI, IoT, and data analytics for the Indian market.

Strategic Partnership Framework

The MoU establishes a collaborative framework between the two companies in the agri-technology domain. ME Technology Trading Ltd, located in Habanai 31 Jerusalem, specializes in technology and solutions development, including AI-based systems, data analytics, and digital technology solutions. The company operates within technology ecosystems with exposure to global innovation hubs, particularly Israel, which is internationally recognized for advancements in agri-technology, precision farming, water efficiency, and data-driven agriculture.

Collaboration Scope and Objectives

The partnership encompasses two primary areas of cooperation:

The collaboration is designed to integrate advanced technology solutions in the agriculture sector with a focus on improving productivity, efficiency, sustainability, and data-driven decision-making across the agricultural value chain.

Agreement Structure and Terms

The MoU is structured as a non-binding framework agreement executed in the ordinary course of business. Key characteristics of the agreement include:

• Non-binding nature: Outlines broad roles and responsibilities serving as a basis for evaluating potential future engagements
• No partnership creation: Does not establish any partnership, joint venture, agency, or equity relationship between the parties
• Principal-to-principal basis: Each party operates independently and bears its own costs
• Termination clause: Either party may terminate with at least three months' prior written notice

Financial and Regulatory Disclosures

The company has confirmed that the MoU does not involve any monetary consideration or financial commitment at this stage. Important regulatory aspects include:

The agreement does not fall within related party transactions and involves no acquisition, disposal of assets, capital commitment, or financial obligation at this stage. The company has stated that the execution of the MoU does not have any immediate material financial impact.

Market Positioning and Future Outlook

MRC Agrotech continues to evaluate opportunities to integrate advanced technology solutions in the agriculture sector. The partnership with ME Technology Trading Ltd represents part of the company's long-term strategy to leverage appropriate technologies for strengthening its agri-business portfolio. The collaboration provides access to global innovation expertise while focusing on the Indian agricultural market's specific needs and requirements.

This strategic MoU aligns with MRC Agrotech's commitment to enhancing its technological capabilities in the agricultural sector, potentially leading to improved solutions and services for the Indian market.

MRC Agrotech Ltd has filed an application with BSE Limited seeking in-principle approval for a preferential issue of equity shares under Regulation 28(1) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has applied to issue 21.97 lakh equity shares for cash and 86.42 lakh shares for non-cash consideration on a preferential basis.

Preferential Issue Structure

The company proposes to issue equity shares in two tranches through preferential allotment. The issue comprises both cash and non-cash components, with specific allocations for different investor categories.

The issue price of ₹19.50 per share includes a face value of ₹10.00 and a premium of ₹9.50 per share. This pricing is determined based on the floor price calculated according to Chapter V of the SEBI ICDR Regulations.

Revised Fund Utilization Plan

The company issued a disclosure under Regulation 30 on December 19, 2025, significantly revising the utilization of preferential issue proceeds. The Board of Directors decided that no part of the preferential issue proceeds will be utilized towards repayment or pre-payment of borrowings, as all outstanding short-term obligations were repaid from internal accruals prior to June 2025.

Working Capital Deployment Strategy

The incremental working capital requirement of ₹313.30 lakhs is based on CMA workings prepared using the last 3 years audited financials. The deployment is planned between January 2026 and March 2026.

Future Funding Requirements

An additional ₹100.00 lakhs has been earmarked for future funding requirements, specifically focusing on R&D facility setup, product launches, and expansion into nutraceuticals.

R&D Facility Development

The company plans to establish a pilot R&D facility at Belapur, Thane, with an estimated cost of ₹30.00 lakhs. The facility will focus on bio-formulation development and include specialized equipment for fermentation, sterilization, analytical testing, and processing.

Product Launch Activities

The company has allocated ₹20.00 lakhs for product launch activities, focusing on two proprietary formulations from the MARSAPI IP portfolio.

Nutraceuticals and Soil Health Expansion

The company has earmarked ₹25.00 lakhs for initial expansion into nutraceuticals and soil health management products, covering the feasibility and development phase.

Non-Cash Component - Acquisition Strategy

The non-cash component of 86,42,097 shares, aggregating to ₹16,85,20,896, is intended for the acquisition of 100% shareholding in MARSAPI Lifesciences Private Limited. This share swap arrangement involves issuing company shares to the existing shareholders of the target company as consideration for their equity stakes.

Authorized Capital Enhancement

To accommodate the preferential issue, the company proposes to increase its authorized share capital from ₹20,50,00,000 to ₹35,50,00,000, divided into 3.55 crore equity shares of ₹10 each. This increase requires amendments to the Memorandum and Articles of Association.

Regulatory Compliance

The preferential issue is subject to various regulatory approvals and compliance requirements. The company has obtained valuation reports from registered valuers and ensured compliance with SEBI ICDR Regulations. The equity shares proposed for allotment will be subject to lock-in periods as specified under Chapter V of the SEBI ICDR Regulations.

The allotment is expected to be completed within 15 days from the date of passing the special resolution by members, subject to receipt of necessary regulatory approvals. The company has undertaken to maintain transparency in disclosures and ensure utilization of proceeds strictly in line with applicable SEBI ICDR Regulations.