Galactico Corporate Services to Divest Stake for ₹6.67 Crore

Introduction

Galactico Corporate Services, a SEBI-registered Category I Merchant Banker, has initiated a postal ballot to seek shareholder approval for four key strategic resolutions. The proposals, announced following a board meeting on March 15, 2026, include the divestment of a majority stake in a subsidiary, maintenance of liquid net worth, and other measures aimed at regulatory compliance and strategic restructuring.

Four Key Resolutions Under Review

The company has put forth four resolutions for shareholder consideration via remote e-voting. These measures are designed to align the company's operations with new regulatory mandates and optimize its business structure.

The most significant proposal is the divestment of its 73.77% shareholding in subsidiary Seven Hills Beverages Limited. This is classified as a special resolution. The other three are ordinary resolutions: maintaining a liquid net worth of ₹2.00 crore by December 31, 2026; authorizing its Separate Business Unit (SBU) to undertake other permissible activities; and modifying the terms of debentures held in another subsidiary, Instant Finserve Private Limited.

Details of the Strategic Divestment

The third resolution proposes the sale of 27,51,451 equity shares, representing a 73.77% stake in Seven Hills Beverages Limited. The stake will be sold to Mr. Ronak Shah and Group for a total consideration of ₹6.67 crore. This transaction values the entire subsidiary at approximately ₹9.05 crore. Upon completion, expected by April 25, 2026, Galactico will lose control over Seven Hills Beverages and its step-down subsidiary, Palwe Pest Control Private Limited. This move appears to be part of a strategy to exit non-core assets, particularly as the company's packaged drinking water segment reported a revenue decline of 8.78% in the first half of fiscal year 2026.

SEBI Compliance Driving the Restructuring

These strategic decisions are directly linked to the SEBI (Merchant Bankers) Amendment Regulations, 2025. The new framework mandates significantly higher capital adequacy for merchant bankers. Galactico, as a Category I Merchant Banker, must increase its minimum net worth to ₹25.00 crore by January 2027 and further to ₹50.00 crore by January 2028. The divestment and other financial resolutions are critical steps to fortify the company's balance sheet and ensure compliance with these upcoming regulatory requirements.

Postal Ballot Timeline

Shareholders have been provided with a clear timeline to participate in the decision-making process through the NSDL e-voting platform. The company has appointed Akshay R. Birla and Associates as the scrutinizer to oversee the process.

Recent Financial Maneuvers

The proposed resolutions follow a series of other financial activities. In early March 2026, its subsidiary Instant Finserve Private Limited completed an allotment and redemption of Optionally Convertible Redeemable Debentures (OCDs) worth ₹5.5 crore. This was preceded by a postal ballot in late 2025, where shareholders approved an investment of up to ₹6 crore into the same subsidiary, funded by a rights issue. These actions, combined with a July 2025 resolution to increase the company's authorized share capital from ₹15 crore to ₹20 crore, indicate a sustained effort to manage capital and strengthen the financial position of its subsidiaries.

Company Financial Performance

Galactico's recent financial results provide context for its strategic shifts. For the half-year ended September 30, 2025, the company reported a consolidated revenue of ₹1,180.57 crore, a modest 3.18% year-on-year growth. However, profitability saw a significant jump, with profit after tax surging 97.10% to ₹252.33 crore. The Investment Banking segment was a standout performer, with revenues growing 75.03% to ₹200.17 crore, underscoring the company's potential focus on its core merchant banking operations.

Conclusion

Galactico Corporate Services is navigating a period of significant strategic realignment. The proposed divestment and other resolutions are proactive measures to comply with stringent new SEBI regulations, streamline operations by exiting non-core businesses, and focus on high-growth areas like investment banking. Shareholders will play a crucial role in shaping this new direction, with the results of the postal ballot on April 18, 2026, set to determine the company's immediate path forward.