Equity Elevation: Shivamshree Businesses Greenlights ₹45 Million Boost

Image Source: Good Returns

Shivamshree Businesses Ltd has made a major capital infusion proposal, and its Board of Directors has approved the issue of equity shares of ₹4.5 crore (₹45 million). This action is taken to enhance the financial strength of the company and support its future growth initiatives.

Board Approval and Shareholder Meeting

The board meeting on January 30, 2025, authorized the issue of 3 crore (30 million) equity shares at ₹1.50 per share, aggregating ₹4.5 crore, through a preferential allotment, subject to shareholder and regulatory approvals.
The company will hold an Extraordinary General Meeting (EGM) on March 1, 2025, to obtain shareholder approval for this preferential issue.

Increase in Authorised Share Capital

The authorised share capital shall be enhanced from ₹5 crore to ₹9 crore to enable the company to issue not more than 9 crore equity shares of ₹1 each.
This modification needs and is subject to approval by the shareholders and shall be shown in the company's Memorandum and Articles of Association.

Preferential Allotment details

The preferential allotment comprises 13 investors, including primary promoters and one private company, Shivam Greentech Pvt Ltd, the largest single allotment of which will be for 78 lakh shares.
January 29, 2025, has been fixed as the relevant date as per SEBI regulations for price determination at issue price of ₹1.50 per share.
The issuance will be carried out in accordance with the Companies Act, 2013, and SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, ensuring all statutory and regulatory requirements are met.

Appointment of Scrutinizer

Ishit Vyas and Co. has been appointed as the scrutinizer to oversee the remote e-voting process and voting at the EGM, ensuring transparency and fairness.

Market Reaction

As of 28th April, 2025, the share price of Shivamshree Businesses Ltd stood at ₹2.54, which was a huge jump from its 52-week low of ₹0.72, indicating investor optimism for the company in prospect of raising the capital.

Strategic Reason

The new money will help the company better position itself to undertake new business ventures, drive expansion plans, and strengthen overall financial solidity.

Increase in authorized share capital and preferential allotment are tactical moves to put Shivamshree Businesses Ltd on a trajectory of growth and value addition to its stakeholders.

Sources: Shivamshree Businesses Ltd Board Meeting Result, January 30, 2025 (Company Financial Statement), Economic Times Corporate Announcements, Upstox, Moneycontrol