Linde India Limited conducted an Extra-ordinary General Meeting on March 5, 2026, to seek shareholder approval for material related party transactions with Praxair India Private Limited for the 2025-26 financial year. The proposed resolution, which sought an aggregate transaction limit of Rs 4,177 million, was ultimately not passed by the members, as the votes cast against the proposal significantly outweighed those in favor.
EGM Proceedings and Voting Outcome
During the Extra-ordinary General Meeting held via video conference, the company management presented a proposal to authorize material related party transactions with Praxair India Private Limited. These transactions, spanning goods, services, and engineering contracts, were valued at an aggregate of Rs 4,177 million. Despite management’s assertions regarding the importance of these transactions for maintaining supply reliability and operational continuity, the voting results confirmed that the ordinary resolution was defeated.
Details of the Voting Results
According to the official scrutiny report, total votes polled amounted to 14,679,834, representing 17.21% of the company’s outstanding shares. Only 10.76% (1,579,994 votes) of the total polled votes supported the resolution, while 89.24% (13,099,840 votes) voted against it. In accordance with legal requirements, none of the related parties participated in the voting process to approve the measure.
Strategic Context of Proposed Transactions
Prior to the vote, management explained that the company’s RPT value with Praxair India had exceeded 10% of the prior year’s turnover during the quarter ended December 2025. The company highlighted that these arrangements were essential for sourcing industrial and medical gases to avoid logistical disruptions, especially as current capacity utilization in certain regions remains above 100%. The proposal aimed to secure these operational flows through the remainder of the fiscal year.
Next Steps
Following the rejection of the resolution, the company must now evaluate its operational strategies and contract obligations with Praxair India. The board and management, who had previously recommended approval based on independent certifications that these transactions were conducted at arm’s length, will need to navigate the implications of this shareholder decision for the upcoming financial operations.
Source: BSE
