Eurotex Industries and Exports seeks nod for ₹39 crore sale

Eurotex Industries and Exports Limited has sought shareholder approval to sell, lease or otherwise dispose of all or substantially all of its undertaking(s) for an aggregate value of up to ₹39 crore, including ₹25 crore approved earlier. The proposal requires a special resolution under Section 180(1)(a) of the Companies Act, 2013.

What approval is Eurotex seeking from shareholders?

Eurotex Industries and Exports Limited, referred to hereafter as Eurotex, issued a postal ballot notice on October 1, 2026, seeking authority to sell, lease or otherwise dispose of the whole or substantially the whole of its undertaking(s). The aggregate value of transactions under the proposed authority cannot exceed ₹39 crore.

The resolution covers undertakings in which the company’s investment exceeds 20% of its net worth, or which generate 20% of its total income, based on the audited balance sheet for the preceding financial year. Such a transaction requires shareholder consent through a special resolution under Section 180(1)(a) of the Companies Act.

The notice gives Eurotex’s Board authority to negotiate, finalise and execute necessary documentation, including definitive agreements and deeds of assignment. The Board may also delegate powers as needed to implement an approved transaction. The company has not disclosed a buyer, a definitive agreement, or the specific assets that could be transferred.

How did the postal ballot process unfold?

Eurotex dispatched the postal ballot notice by email on October 1, 2026, following its 40th Annual General Meeting in September 2026. At that meeting, shareholders approved the stated key resolutions, including adoption of audited financial statements and director appointments.

The company subsequently published a newspaper notice on October 3 confirming the dispatch of the postal ballot material. Shareholders holding shares on the September 29, 2026 cut-off date were eligible to vote on the proposed disposal resolution.

Remote e-voting commenced at 9:00 am on October 5, 2026 and closed at 5:00 pm on November 3, 2026. Central Depository Services (India) Limited was appointed to facilitate the voting process, while Aabid & Co., Company Secretaries, was named scrutinizer.

Under the stated timetable, the company is to declare voting results within 48 hours of the close of e-voting, or by November 5, 2026. If the requisite majority approves the special resolution, it will be deemed passed on the final voting date.

Why is the ₹39 crore limit significant?

The ₹39 crore ceiling includes ₹25 crore that shareholders had approved earlier. On that basis, the fresh resolution indicates an additional ₹14 crore of permitted transaction headroom, rather than a standalone ₹39 crore addition to the prior authority.

The value cap sets the maximum aggregate consideration for the disposal authority described in the notice. It does not confirm that Eurotex has agreed to sell assets for ₹39 crore, nor does it establish the final consideration, timing or structure of any future transaction.

The wording is significant because it relates to the whole or substantially the whole of the company’s undertaking(s), rather than a routine sale of a minor asset. The legal threshold links the resolution to assets or operations that cross the specified 20% net-worth investment or 20% income criteria.

Postal ballots allow listed companies to seek shareholder decisions without convening a physical general meeting. Eurotex has used shareholder voting processes previously, with disclosures in the available record referring to postal-ballot outcomes and scrutinizer reports in 2025.

What does the proposal mean for investors and operations?

For shareholders, the immediate event is a governance process rather than a completed business sale. Approval would authorise Eurotex’s Board to pursue transactions within the disclosed ₹39 crore ceiling, but implementation would still depend on the Board’s decisions and any agreements it enters into.

The available disclosures do not identify a counterparty, asset buyer, lease tenant or transaction closing date. They also do not state how sale proceeds, if any transaction is completed, would be used. Investors therefore have no disclosed basis to assess a final deal valuation, accounting impact or change in the company’s future operations.

The proposal is material because it concerns the company’s undertaking(s) and requires a special resolution. Yet the filing does not itself report a completed disposal, revenue figure, operating shutdown, or financial performance effect. Any direct financial impact would depend on the terms of a future transaction that Eurotex has not disclosed.

The company’s use of CDSL for remote e-voting and appointment of an independent scrutinizer are procedural elements intended to record and verify shareholder votes. The next disclosed milestone is publication of the postal-ballot outcome within the indicated 48-hour period after voting ended.

What should investors monitor after the vote?

Investors should first monitor the voting result and whether the special resolution receives the required shareholder approval. The stated outcome deadline is November 5, 2026, based on the timetable provided in the postal ballot notice.

If approval is obtained, the key disclosures to watch would be the identity of any counterparty, the assets or undertaking involved, final consideration, transaction conditions and intended use of proceeds. These details are not contained in the current postal-ballot notice.

Market participants may also track any subsequent exchange filings under listing-disclosure requirements, particularly if the Board executes definitive agreements or completes a transfer. Until then, the ₹39 crore amount remains an approval limit and not a reported completed sale value.

Conclusion

Eurotex has placed before shareholders a special resolution enabling the sale, lease or disposal of all or substantially all of its undertaking(s) up to ₹39 crore. The proposal incorporates ₹25 crore of earlier approval and indicates ₹14 crore of additional headroom, while leaving the buyer, assets and final transaction terms undisclosed.

The immediate item to watch is the postal-ballot result, which the company said would be declared by November 5, 2026. Any later disclosure of a definitive agreement, counterparty, consideration and use of proceeds will be needed to establish the operational and financial effect of an approved transaction.