Godavari Drugs Holds 1st EGM for FY 2025-26

Godavari Drugs Limited (BSE: 530317) conducted its 01st Extra-Ordinary General Meeting (EGM) for the financial year 2025-26 on Thursday, February 12, 2026.

The meeting was held through Video Conferencing (VC) / Other Audio-Visual Means (OAVM) in compliance with the provisions of the Companies Act, 2013, applicable rules, and circulars issued by the Ministry of Corporate Affairs (MCA) and SEBI.

The EGM commenced at 11:00 A.M. (IST) and concluded at 11:30 A.M. (IST), including the additional time provided for electronic voting.

The outcome of the meeting has been disclosed under:

• Regulation 30 of SEBI (LODR) Regulations, 2015

• Regulation 44 of SEBI (LODR) Regulations, 2015

Key Business Approved at the EGM

The shareholders considered and approved two Special Resolutions:

1. Issue of Equity Shares on Preferential Basis

Approval was granted for the issue of Equity Shares on Preferential Basis to:

• Promoters

• Non-Promoters

The shares will be issued for consideration in cash.

2. Issue of Convertible Warrants on Preferential Basis

Approval was also granted for the issue of Convertible Warrants on Preferential Basis to the Promoters, again for consideration in cash.

Both resolutions were classified as Special Resolutions, requiring at least 75% majority approval.

Attendance and Participation Details

A total of 46 members attended the meeting through VC:

• Promoters and Promoter Group: 8

• Public Shareholders: 38

No physical attendance or proxy participation was recorded since the meeting was held entirely through VC.

The total number of shareholders as on the Record Date (February 5, 2026) was 7,416.

Directors and Key Management Present

The meeting was chaired by:

Mr. Ghanshyam Jaju – Chairman and Non-Executive Director

Other Directors and Key Managerial Personnel present through VC:

• Mr. Mukund Kakani – Managing Director

• Mr. Mohit Jaju – Whole-time Director & CFO

• Mr. Mahendra Uday Bhalerao – Independent Director

• Mrs. Shilpa Bung – Independent Director

• Mr. Dinesh Udpa – Independent Director

• Mr. Venkatesh Achanta – Company Secretary & Compliance Officer

The scrutinizer appointed for the meeting was:

CS Vidya Harkut
Practicing Company Secretary
VSS & Associates

Voting Mechanism

Voting was conducted through:

• Remote E-Voting (February 9, 2026 to February 11, 2026)

• Instapoll (Electronic Voting during EGM)

The cut-off date for determining voting rights was February 5, 2026.

Voting Results – Resolution 1

Issue of Equity Shares on Preferential Basis

Total Shares Held: 75,30,500
Total Votes Polled: 43,60,729
Voting Percentage: 57.90%

Votes in Favour: 43,60,720
Votes Against: 9

Percentage in Favour: 99.9998%

The resolution was passed with overwhelming majority.

Promoter and promoter group were interested in the resolution.

Voting Results – Resolution 2

Issue of Convertible Warrants on Preferential Basis

The voting pattern was almost identical:

Votes in Favour: 43,60,720
Votes Against: 9

Percentage in Favour: 99.9998%

The resolution was successfully passed as a Special Resolution.

Scrutinizer Report Highlights

The Scrutinizer confirmed that:

• Remote e-voting remained open from 9:00 A.M., February 9, 2026 to 5:00 P.M., February 11, 2026.

• Votes were unblocked on February 12, 2026 after conclusion of the meeting.

• Total valid votes in favour were 100% of valid votes cast (excluding negligible invalid votes).

• Both resolutions were passed with the requisite majority under the Companies Act, 2013.

The Scrutinizer issued the report on February 12, 2026.

What Is Preferential Issue?

A Preferential Issue is when a company issues shares or warrants to a select group of investors, such as:

• Promoters

• Strategic Investors

• Institutional Investors

This is different from a public issue, as it is not offered to all shareholders equally.

It is commonly used to:

• Raise fresh capital

• Strengthen promoter holding

• Fund expansion plans

• Improve working capital

What Are Convertible Warrants?

Convertible Warrants give the holder the right to convert them into equity shares at a predetermined price within a specified time period.

Key features:

• Usually require upfront payment (typically 25%)

• Balance payable at time of conversion

• Conversion leads to increase in share capital

• May result in dilution for existing shareholders

Possible Impact on Shareholding Pattern

Since promoters are participating in both:

• Equity Shares Issue

• Convertible Warrants Issue

This may result in:

• Increase in promoter shareholding

• Strengthening of control

• Possible dilution of public shareholding

• Increase in total paid-up capital

However, the exact impact will depend on:

• Number of shares allotted

• Conversion terms of warrants

• Pricing formula under SEBI ICDR Regulations

Regulatory Compliance

The company confirmed compliance with:

• Section 108 of Companies Act, 2013

• Rule 20 of Companies (Management and Administration) Rules, 2014

• Regulation 44 of SEBI LODR

• MCA and SEBI circulars for VC-based meetings

The EGM notice was sent electronically to shareholders, and advertisements were published as required.

Why This Move Is Important

The approval of preferential issue indicates that:

• The company may be planning capital expansion

• Promoters are willing to infuse funds

• Balance sheet strengthening may be underway

For investors, such moves can signal:

• Confidence from promoters

• Potential growth plans

• Possible earnings expansion

However, investors should also assess:

• Dilution risk

• Pricing of preferential issue

• Future financial performance

About Godavari Drugs Limited

Godavari Drugs Limited
CIN: L24230TG1987PLC008016

Registered Office:
Mayfair, S.P. Road, Secunderabad – 500003, Telangana

The company operates in the pharmaceutical sector, engaged in manufacturing and supplying pharmaceutical products. Its plant is located at:

A-6/2, MIDC, Nanded – 431603, Maharashtra.

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