Le Merite Exports Limited, a prominent company listed on the National Stock Exchange (NSE) of India, held a Board of Directors meeting on April 21, 2025, where significant decisions were made for the future growth and strategic direction of the company. The meeting focused on key corporate developments, including the incorporation of a subsidiary, migration to the Main Board of the NSE, and the appointment of scrutinizers for conducting a postal ballot.

1. Subsidiary Incorporation Approved

The Board approved the decision to incorporate a new subsidiary that will operate within the textile industry. This subsidiary is set to manufacture and sell technical textiles and related products. The target market for these products includes defense forces, paramilitary forces, security agencies, and other government sectors and organizations.

The company will follow the regulatory guidelines under the Companies Act, 2013, including compliance with Sections 179(3)(e) and 186 regarding investment in subsidiary companies. The incorporation of this subsidiary will be subject to necessary regulatory approvals.

The objective behind incorporating the subsidiary is to diversify Le Merite Exports' operations and enhance its product offerings in the textile sector, specifically targeting critical and defense-related markets. The company aims to capitalize on growing demand for technical textiles that serve specialized industrial and security applications.

2. Migration to NSE Main Board

A major decision taken during the meeting was to migrate from the SME platform of the National Stock Exchange (NSE) to its Main Board. This move will not only enhance the visibility and stature of Le Merite Exports within the financial markets but also provide it with greater access to capital and a larger investor base. Along with this migration, the company has also decided to apply for listing its equity shares on the Bombay Stock Exchange (BSE) Main Board.

The migration to the Main Board represents the company's commitment to growth, transparency, and corporate governance. It will enable Le Merite Exports to expand its presence in the capital markets, attract new investors, and facilitate liquidity for its shares.

3. Postal Ballot for Shareholder Approval

The company has also approved the issuance of a Postal Ballot Notice to its shareholders, seeking their consent for the migration from the NSE SME platform to the Main Board. The approval will be sought through e-voting, and a dedicated scrutineer, M/s Ayush Khandelwal & Associates, a practicing company secretary, will oversee the process. The postal ballot notice will also include a resolution to seek approval for listing the company's equity shares on the BSE Main Board.

This move aligns with the company's focus on enhancing shareholder value and ensuring transparency in all corporate actions.

4. Other Approvals

In addition to the above-mentioned decisions, the Board approved several other items under the permission of the Chairperson. These included reviewing the operational performance of the company and its subsidiaries, as well as future strategic plans.

5. Regulatory Approvals

As per the regulations, the subsidiary incorporation process will be contingent upon obtaining all necessary regulatory approvals. Once the required approvals are received, further updates will be provided to stakeholders.

Conclusion

The decisions taken in the Board meeting reflect Le Merite Exports Limited's strategic vision for growth and expansion. The incorporation of the subsidiary is expected to bring new opportunities in the textile sector, particularly in technical textiles. Meanwhile, the migration to the Main Board of NSE and the application for a BSE listing is poised to strengthen the company's presence in the capital markets.

With these strategic moves, Le Merite Exports Limited aims to position itself as a key player in the textile industry while maximizing value for its shareholders. The company remains committed to ensuring regulatory compliance and maintaining transparency in its operations.

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