Sai Capital Limited Seeks Shareholder Approval for Rs. 80 Crore Material Related Party Transactions

Sai Capital Limited , a company listed on the Indian stock exchange, has recently issued a postal ballot notice seeking shareholder approval for two significant material related party transactions. These transactions, each worth Rs. 40 crores, involve corporate and personal guarantees between the company's material subsidiaries and key personnel.

Key Points of the Postal Ballot Notice

Transaction Details: Two separate material related party transactions, each valued at Rs. 40 crores.
Nature of Transactions:
- Corporate guarantee between material subsidiaries
- Personal guarantee by a key personnel
Purpose: To secure credit facilities for Health Care Energy Foods Private Limited, supporting business expansion.
Voting Period: E-voting process runs from December 6, 2025, to January 4, 2026.

Transaction Breakdown

Transaction Type	Parties Involved	Amount (in Crores)
Corporate Guarantee	Between material subsidiaries	40.00
Personal Guarantee	Key personnel to material subsidiary	40.00

Financial Context

To provide context for these transactions, let's examine Sai Capital Limited's consolidated balance sheet data:

Metric	FY 2025 (in Crores)	YoY Change
Total Assets	381.50	4.21%
Total Equity	360.90	3.08%
Current Assets	296.80	17.31%
Current Liabilities	16.10	29.84%

The proposed guarantees of Rs. 80 crores represent approximately 21% of the company's total assets as of FY 2025, indicating the significance of these transactions relative to the company's size.

Implications for Shareholders

Business Expansion: The guarantees aim to secure credit facilities for Health Care Energy Foods Private Limited, potentially driving growth for this material subsidiary.
Financial Flexibility: By utilizing guarantees rather than direct funding, Sai Capital Limited is supporting its subsidiary's expansion without immediate cash outflow or equity dilution.
Risk Consideration: Shareholders should consider the potential risks associated with these guarantees, as they represent contingent liabilities for the company.
Governance and Transparency: The company's decision to seek shareholder approval through a postal ballot demonstrates a commitment to corporate governance and transparency in material related party transactions.

Shareholders are advised to carefully review the full postal ballot notice and consider the potential impacts of these transactions on the company's financial position and future growth prospects before casting their votes.

The e-voting period provides time for shareholders to make an informed decision on these material related party transactions, which could significantly influence the company's strategic direction and financial structure in the coming years.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.37%	-2.80%	-5.82%	-24.85%	-60.05%	+1,081.66%

Sai Capital Limited has reported a robust financial performance for the first quarter of the fiscal year, ending June 30. The company's board meeting, held on August 14, approved the unaudited financial results and made significant decisions regarding key appointments and the upcoming Annual General Meeting (AGM).

Consolidated Financial Highlights

On a consolidated basis, Sai Capital Limited demonstrated strong growth:

Particulars (in Lacs)	Q1 Current Year	Q1 Previous Year	YoY Change
Total Income	599.58	455.84	+31.5%
Net Profit	311.28	187.87	+65.7%

The company's total income surged by 31.5% year-over-year to Rs 599.58 lacs, while net profit saw an impressive growth of 65.7%, reaching Rs 311.28 lacs in the current quarter.

Standalone Performance

On a standalone basis, Sai Capital Limited reported a reduced net loss of Rs 15.24 lacs for the current quarter, compared to a loss of Rs 16.85 lacs in the same quarter last year, showing a slight improvement in its financial position.

Key Appointments and AGM Announcement

The board approved several important decisions:

Re-appointment of Independent Director: Mrs. Kamlesh Gupta (DIN: 07243898) has been re-appointed as a Non-Executive Independent Director for a second term of five years, from March 26, 2026, to March 25, 2031, subject to shareholder approval.
Secretarial Auditor Appointment: Ms. Sakshi Gupta, a Practicing Company Secretary (Membership No. 59295, CoP. No. 22952), has been re-appointed as the Secretarial Auditor for a period of five consecutive years, pending shareholder approval.
Annual General Meeting: The 30th AGM is scheduled for September 29, at 12:30 P.M. through Video Conferencing/Other Audio Visual Means (VC/OAVM).
Book Closure: The Register of Members and Share Transfer Books will remain closed from September 23 (09:00 A.M.) to September 29 (05:00 P.M.) for the AGM.
E-Voting Cut-off Date: September 22 has been set as the cut-off date for determining member eligibility for e-voting during the AGM.

The board meeting commenced at 11:35 A.M. and concluded at 01:05 P.M. on August 14.

Sai Capital Limited's strong quarterly performance, particularly on a consolidated basis, reflects positively on the company's overall financial health and operational efficiency. The re-appointment of key personnel and the announcement of the AGM demonstrate the company's commitment to corporate governance and shareholder engagement.