Prime Industries Limited’s Board of Directors met on September 20, 2026, approving a significant increase in the company’s authorized share capital from ₹35 crore to ₹40 crore. Additionally, the board greenlit a preferential issue of up to 27,30,000 equity shares at ₹42 per share to non-promoter category investors. Several other key appointments and administrative matters were also discussed and approved, subject to shareholder and regulatory consent.
Board Approves Capital Expansion and Share Issuance
At a meeting held on Sunday, September 20, 2026, the Board of Directors of Prime Industries Limited has approved a notable increase in the company’s authorized share capital. The capital will be enhanced from the existing ₹35,00,00,000/- (Rupees Thirty-Five Crores Only) to ₹40,00,00,000/- (Rupees Forty Crores Only). This change involves an increase in the number of equity shares from 7,00,00,000 to 8,00,00,000, each with a face value of ₹5/-. This decision necessitates an alteration to Clause V of the Memorandum of Association, subject to shareholder approval at the upcoming Annual General Meeting (AGM).
Preferential Issue to Non-Promoters
In a significant move to raise capital, the Board also approved the issuance of up to 27,30,000 equity shares on a preferential basis to the non-promoter category. These shares, with a face value of ₹5/-, will be offered at a price of ₹42/- per share. The total issue size is projected to be approximately ₹11,46,60,000/- (Rupees Eleven Crores Forty-Six Lakhs Sixty Thousand Only). This preferential issue is conditional upon the approval of shareholders and relevant regulatory authorities.
Key Investor Details for Preferential Issue
The preferential allotment is structured to include specific investors: Mr. Uday Narang will receive 24,92,500 equity shares, and Mr. Kushal Muchhal will be allotted 2,37,500 equity shares, both categorized as Non-Promoters. Following this allotment, the post-preferential shareholding of Mr. Uday Narang is expected to be 11.32%, and Mr. Kushal Muchhal’s will be 1.00% of the company’s equity capital.
Other Business Transacted
The Board also approved the appointment of Mr. Deepak Handa as an Additional Director (Non-Executive) and CS Diksha Tiwari as the Company Secretary and Compliance Officer, effective September 20, 2026. The appointment of M/s. Modi Harsh & Co. as Internal Auditors for the financial year 2026-27 was also sanctioned. Furthermore, an alteration to the main object clause of the Memorandum of Association to include new business areas such as automotive design, manufacturing, and dealing in metals, plastics, and allied engineering segments was approved. The Board also approved the Notice of the 34th Annual General Meeting, scheduled with specific cut-off dates for dispatch and remote e-voting, and appointed CS Pooja M. Kohli as Scrutinizer. The appointment of Central Depository Services (India) Limited (CDSL) for remote e-voting services was also confirmed. In addition, proposals for material related party transactions and the opening of a new branch office in Noida were approved. The Board took note of the resignation of Mr. Harjeet Singh Arora from his directorship, effective September 19, 2026, leading to the reconstitution of the Nomination & Remuneration Committee and Stakeholder Relationship Committee.
Source: BSE
