Ace Alpha Tech Limited approves 863-for-1,000 share swap

Ace Alpha Tech approved its amalgamation into Share India Securities on November 6, 2026, under which shareholders will receive 863 fully paid Share India Securities shares of Rs 2 each for every 1,000 Ace Alpha Tech shares of Rs 10 each held, subject to regulatory and shareholder approvals.

What did Ace Alpha Tech approve on November 6, 2026?

Ace Alpha Tech approved a scheme to merge into Share India Securities as a going concern at its board meeting held on November 6, 2026. Under the scheme, Ace Alpha Tech is the transferor company and Share India Securities is the transferee company, with the transaction proposed under Sections 230 to 232 of the Companies Act, 2013.

The approval does not complete the transaction. The scheme requires approvals, consents or sanctions from Ace Alpha Tech members and creditors, the National Company Law Tribunal, or NCLT, and other appropriate authorities. Ace Alpha Tech said the required application under Regulation 37 of the Securities and Exchange Board of India, or SEBI, Listing Regulations will be filed with the stock exchange within the prescribed timeline.

The board meeting began at 4:30 p.m. and ended at 5:15 p.m. on November 6, 2026. If the scheme becomes effective, Ace Alpha Tech will be dissolved without winding up, so its separate listed-company shareholding pattern will no longer apply.

What shares will Ace Alpha Tech shareholders receive?

Ace Alpha Tech shareholders will receive 863 new fully paid equity shares in Share India Securities for every 1,000 fully paid Ace Alpha Tech equity shares they hold. The new Share India Securities shares will carry a face value of Rs 2 each, while the Ace Alpha Tech shares exchanged carry a face value of Rs 10 each.

The exchange ratio is fixed in the disclosed scheme, rather than being stated as a cash consideration. For example, a holding of 1,000 Ace Alpha Tech shares corresponds to 863 newly issued Share India Securities shares, before addressing any fraction that may arise from an investor's actual holding.

Fractional Share India Securities share entitlements will be aggregated and held by a trust nominated by its board. The trust must sell those shares in the market within 90 days of allotment, and Share India Securities must submit an audit committee and independent-director certification to the designated stock exchange within seven days after eligible holders are compensated for their fractional entitlements.

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

Share India Securities reported a larger financial base than Ace Alpha Tech in the figures disclosed for the period ended September 30, 2026. Ace Alpha Tech reported net worth of Rs 81.50 crore, while Share India Securities reported consolidated net worth of Rs 2,788.90 crore, reflecting their different reported scale and business mix.

The September 30, 2026 figures cover a partial period and should not be treated as full-year equivalents. Ace Alpha Tech reported total income of Rs 20.73 crore and profit after tax of Rs 12.15 crore, compared with Share India Securities' consolidated total income of Rs 849.95 crore and profit after tax of Rs 234.88 crore.

Ace Alpha Tech's reported net worth rose from Rs 69.35 crore at March 31, 2026 to Rs 81.50 crore at September 30, 2026, while its reserves and surplus excluding other comprehensive income rose from Rs 51.80 crore to Rs 63.94 crore. Over the same disclosed dates, Share India Securities' consolidated net worth increased from Rs 2,577.64 crore to Rs 2,788.90 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 business with Share India Securities' capital-markets and financial-services operations. Ace Alpha Tech develops customised trading software, including advanced algorithms that interface with order management systems and risk management systems, and provides technology-driven solutions to institutional investors, high-net-worth individuals and retail traders.

Share India Securities operates in share and 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 technology-driven financial solutions, including automated and algorithmic trading systems, trading platforms and related technology services.

Management's stated rationale is to put complementary activities inside one company and coordinate software development, algorithmic trading and technology support with financial-services infrastructure. The disclosed plan also cites simpler corporate structure, coordinated resource deployment and a platform to develop and deploy technology-enabled financial products and services.

How will the merger affect Share India Securities ownership?

The proposed share issue will raise Share India Securities' total outstanding shares to 23,80,85,251 from 22,32,27,530, based on the disclosed pre- and post-scheme ownership table. Its promoter and promoter-group holding is projected to increase in share count to 10,94,15,270 from 10,63,85,244, but decline as a percentage to 45.96% from 47.66% because of the new shares issued.

Public shareholding in Share India Securities is projected to rise to 12,86,69,981 shares, or 54.04%, from 11,68,42,286 shares, or 52.34%. The disclosure shows no shares in the “others” category before or after the scheme.

Ace Alpha Tech said the scheme is not a related-party transaction because Share India Securities was not a related party as of the transaction date. However, certain members of Ace Alpha Tech's promoter and promoter group hold Share India Securities equity shares; apart from that shareholding, the disclosure states they have no interest in Share India Securities.

Conclusion

The approved scheme would move Ace Alpha Tech's automated-trading and financial-market technology activities into Share India Securities through a fixed 863-for-1,000 equity exchange. The transaction combines a company reporting Rs 81.50 crore of net worth at September 30, 2026 with a transferee reporting consolidated net worth of Rs 2,788.90 crore for the same period, while giving Ace Alpha Tech holders equity participation in the combined business.

The next developments to watch are the Regulation 37 stock-exchange filing, approvals from members, creditors, the NCLT and other authorities, and the scheme's effective date. If completed, investors should also monitor the allotment of new Share India Securities shares and the trust-led sale and compensation process for fractional entitlements within the stated 90-day period.