Shanthi Gears Limited , a prominent player in the industrial gear manufacturing sector, has recently made two significant announcements that have caught the attention of investors and market watchers.

Promoter Group Reclassification Request

Shanthi Gears Limited has received a formal request from Yanmar Coromandel Agrisolutions Private Limited, a member of its promoter and promoter group, seeking reclassification from the 'promoter and promoter group' category to the 'public' category. This request was made through a letter dated September 16 and received by the company on September 17.

According to the company's filing with the stock exchanges, Yanmar Coromandel Agrisolutions Private Limited currently holds no equity shares in Shanthi Gears Limited. The reclassification process, as per SEBI regulations, will require approvals from multiple entities:

1. Shanthi Gears Limited's Board of Directors
2. National Stock Exchange of India Limited (NSE)
3. BSE Limited

This move could potentially alter the company's shareholding structure and may have implications for its governance and decision-making processes.

Credit Rating Reaffirmation

In a separate development, Shanthi Gears has also announced that ICRA Limited, a prominent credit rating agency, has reaffirmed the company's credit ratings. The ratings are as follows:

These ratings apply to Shanthi Gears' cash credit, interchangeable, bank fund-based, and non-fund based limits. The reaffirmation of these high credit ratings suggests that ICRA continues to have a positive outlook on Shanthi Gears' financial stability and creditworthiness.

The [ICRA]AA rating indicates high credit quality with low credit risk, while the [ICRA]A1+ rating denotes the highest level of safety in the short term.

These developments, particularly the promoter group reclassification request, may be of interest to shareholders and potential investors as they could impact the company's ownership structure and market perception. Stakeholders are advised to keep an eye on further announcements regarding the approval process for the reclassification request.

Shanthi Gears Limited , a leading manufacturer of gears and gear boxes, has announced a postal ballot to seek shareholder approval for two significant proposals. The company is reaching out to its shareholders for e-voting on these matters from August 19, 2025, to September 17, 2025.

Appointment of New Independent Director

The first proposal seeks approval for the appointment of Ms. Aruna Thangaraj as a Non-Executive Independent Director of the company. If approved, Ms. Thangaraj will serve a five-year term from July 30, 2025, to July 29, 2030.

Ms. Thangaraj brings a wealth of experience to the board. She is currently the Managing Director of AGT Electronics Limited and holds directorships in other prominent companies, including Elgi Equipments Limited and Tidel Park Coimbatore. With a background in electronics engineering and advanced degrees from universities in the United States, Ms. Thangaraj has been instrumental in the growth of AGT's digital marketing division over the past 11 years.

Chairman's Remuneration

The second proposal on the ballot concerns the remuneration of the company's Non-Executive Chairman, Mr. M A M Arunachalam. Shareholders are being asked to approve a commission of Rs. 1.00 crore for Mr. Arunachalam for the financial year 2024-25. This amount exceeds 50% of the total remuneration payable to all other Non-Executive Directors of the company.

The Board of Directors has justified this remuneration based on Mr. Arunachalam's significant role in guiding the company's growth and business development. His contributions include developing business relationships, identifying growth opportunities, and providing direction to the senior management team.

Voting Process and Timeline

Shanthi Gears has engaged the services of National Securities Depository Limited (NSDL) to provide remote e-voting facilities to its shareholders. The e-voting period will commence on August 19, 2025, at 9:00 AM IST and conclude on September 17, 2025, at 5:00 PM IST.

Mr. M.D. Selvaraj, Managing Partner of MDS & Associates LLP, has been appointed as the scrutinizer to oversee the voting process. The results of the postal ballot will be announced by September 19, 2025.

These proposals reflect Shanthi Gears' commitment to strengthening its board with diverse expertise and recognizing the contributions of its leadership. Shareholders are encouraged to participate in the e-voting process to have their say in these important corporate decisions.