Ace Alpha Tech merger sets 863-for-1,000 share exchange

On November 6, 2026, Ace Alpha Tech Limited approved its merger into Share India Securities Limited, giving Ace Alpha Tech shareholders 863 new Share India Securities shares for every 1,000 shares held, subject to member, creditor, regulatory and National Company Law Tribunal approvals.

What did Ace Alpha Tech's board approve?

Ace Alpha Tech's board approved the amalgamation with and into Share India Securities on November 6, 2026, with Ace Alpha Tech as the transferor company and Share India Securities as the transferee company. The scheme is proposed under Sections 230 to 232 of the Companies Act, 2013 and treats Ace Alpha Tech as a going concern.

The board meeting ran from 4:30 p.m. to 5:15 p.m. on November 6, 2026. When the scheme becomes effective, Ace Alpha Tech will be dissolved without being wound up, while its shareholders will receive newly issued Share India Securities equity shares under the stated exchange ratio.

Ace Alpha Tech said the scheme is not a related-party transaction because Share India Securities was not a related party on the transaction date. The filing nevertheless says certain members of Ace Alpha Tech's promoter and promoter group own shares in Share India Securities, though it identifies no interest beyond those holdings.

What share exchange will Ace Alpha Tech holders receive?

Ace Alpha Tech shareholders will receive 863 new, fully paid-up Share India Securities equity shares for every 1,000 fully paid-up Ace Alpha Tech equity shares held. The new Share India Securities shares carry a face value of Rs 2 each, while the Ace Alpha Tech shares covered by the exchange carry a face value of Rs 10 each.

The announced consideration is entirely in shares, with no cash consideration disclosed. Accordingly, Ace Alpha Tech shareholders would become shareholders of Share India Securities after the scheme takes effect, based on the disclosed 863-for-1,000 share exchange.

Fractional entitlements will be aggregated and held by a trust nominated by Share India Securities' board. The trust must sell those shares in the market within 90 days of allotment, and Share India Securities must file certification from its audit committee and independent directors within seven days after compensating eligible shareholders for fractional entitlements.

How do Ace Alpha Tech and Share India Securities compare financially?

Ace Alpha Tech reported net worth of Rs 81.50 crore for the period ended September 30, 2026, compared with consolidated net worth of Rs 2,788.90 crore for Share India Securities. The figures show that Share India Securities had the larger disclosed capital base at the September 30 reporting date.

Ace Alpha Tech's reserve and surplus, excluding other comprehensive income, increased to Rs 63.94 crore at September 30, 2026 from Rs 51.80 crore at March 31, 2026. Its net worth increased from Rs 69.35 crore to Rs 81.50 crore, while paid-up share capital remained Rs 17.56 crore over those two reporting dates.

The September 30, 2026 figures are for partial periods, whereas the March 31, 2026 figures are full-year results and should not be treated as equal-length comparisons. For the year ended March 31, 2026, Ace Alpha Tech reported total income of Rs 27.06 crore and profit after tax of Rs 15.41 crore, while Share India Securities reported consolidated total income of Rs 1,488.85 crore and profit after tax of Rs 324.44 crore.

Why are Ace Alpha Tech and Share India Securities combining?

Ace Alpha Tech said the scheme is intended to combine its technology capabilities, software-development expertise and related activities with Share India Securities' capital-markets and financial-services operations. Ace Alpha Tech develops customised automated trading systems and trading solutions for institutional investors, high-net-worth individuals and retail traders.

Ace Alpha Tech's software uses advanced algorithms and interfaces with existing order management systems and risk management systems. Its stated activities also include technology services and proprietary trading, dealing and investment in securities and other financial instruments, which the proposed scheme would bring into the combined structure.

Share India Securities operates in stock broking, commodity derivatives broking, equity and currency derivatives broking, proprietary trading, depository participant services, portfolio management, research and mutual-fund distribution. It also provides automated and algorithmic trading systems, trading platforms and related technology services, creating the overlap identified in the merger rationale.

Management said the transaction is intended to integrate complementary businesses, coordinate software development and algorithmic-trading capabilities, and simplify the corporate structure. The filing also identifies business planning, resource deployment and operational decision-making as areas where the combined entity is expected to seek efficiencies and pursue technology-enabled financial products and services.

How will Share India Securities' ownership change?

Share India Securities' equity share count is projected to rise by 1,48,57,721 shares, from 22,32,27,530 before the scheme to 23,80,85,251 after it. The disclosed ownership table shows the public category gaining shares and percentage ownership, even as the promoter and promoter-group category also receives additional shares.

The promoter and promoter-group category is projected to gain 30,30,026 shares, but its holding would decline by 1.70 percentage points to 45.96% from 47.66%. The public category is projected to gain 1,18,27,695 shares, increasing its holding by 1.70 percentage points to 54.04%.

What approvals are still required for the merger?

Ace Alpha Tech said the scheme requires approvals, consents and sanctions from members, creditors, the National Company Law Tribunal (NCLT) and other appropriate authorities. The company also said it will file the required application with the stock exchange under Regulation 37 of the Securities and Exchange Board of India Listing Regulations within the prescribed timeline.

The filing does not provide an effective date for the scheme or a date for the NCLT process. The 90-day deadline for sale of fractional-share entitlements begins only from the allotment date, so that deadline depends on the scheme first becoming effective.

Conclusion

The proposed amalgamation would place Ace Alpha Tech's automated-trading software, algorithmic capabilities and technology services within Share India Securities' broader financial-services operations. The main economic term is the issue of 863 new Share India Securities shares for every 1,000 Ace Alpha Tech shares, while the disclosed post-scheme ownership would put public holding at 54.04%.

Next, shareholders should watch for the Regulation 37 stock-exchange application and the required approvals from members, creditors, regulators and the NCLT. Ace Alpha Tech will dissolve without winding up only when the scheme becomes effective, and the treatment of fractional entitlements will start with allotment of the new shares.