Garg Furnace AGM 2026: ₹17.68 Cr Warrant Issue Details

Corrigendum issued for AGM notice dated July 31, 2026

Garg Furnace Ltd has issued a corrigendum to its Annual General Meeting (AGM) notice dated July 31, 2026, to clarify disclosures related to a proposed preferential issue of warrants convertible into equity shares. The corrigendum focuses on changes to the explanatory statement for Item No. 05, including the stated purpose of the fund raise and the pricing methodology as approved by the Board of Directors. The company is seeking shareholder approval for the proposal at its 53rd AGM.

The clarified proposal involves issuing up to 13,98,000 convertible warrants on a preferential basis to promoter group entities and non-promoter investors. Based on the stated issue price, the total fund raise can be up to ₹17.68 crore. The company has also indicated that a significant portion of proceeds is intended for working capital requirements, along with capital expenditure and general corporate purposes.

AGM schedule, venue, and meeting mode

The 53rd AGM has been convened for Saturday, August 29, 2026, at 1:00 P.M. The meeting is scheduled to be held in physical mode at the company’s registered office at Kanganwal Road, V.P.O. Jugiana, G.T. Road, Ludhiana-141120, Punjab. Shareholders will vote on the adoption of financial statements and on special business items, including the preferential warrant issue.

The notice also sets out key administrative dates for shareholder participation. The Register of Members and Share Transfer Books will remain closed from Sunday, August 23, 2026, to Saturday, August 29, 2026 (both days inclusive). The cut-off date for determining voting eligibility for both remote e-voting and voting at the AGM is Saturday, August 22, 2026.

Remote e-voting window and shareholder eligibility

For shareholders choosing to vote electronically, the remote e-voting period is scheduled from 9:00 A.M. on Wednesday, August 26, 2026, to 5:00 P.M. on Friday, August 28, 2026. Eligibility to vote is tied to shareholding as of the cut-off date of August 22, 2026.

These dates matter because the special resolution for the preferential warrant issue requires shareholder approval. Any shareholder engagement, including objections or support for the resolution, will need to be exercised within the prescribed voting window.

Preferential issue structure: size, pricing, and conversion

Under Item No. 05, the company proposes the creation, offer and allotment of up to 13,98,000 convertible warrants. The issue price is set at ₹126.50 per warrant, taking the total issue size to ₹17.68 crore.

Each warrant is convertible into one equity share of face value ₹10, at a premium of ₹116.50 per share. The warrants carry a conversion period of up to 18 months from the date of allotment. This structure means that the equity dilution would occur only on conversion, while the company receives subscription money in tranches as per the payment terms.

Payment terms and the pricing “relevant date”

The payment terms specified for the warrants require 25% of the issue price to be paid upfront at the time of subscription. This works out to ₹31.625 per warrant. The remaining 75%, or ₹94.875 per warrant, is payable at the time of conversion.

For pricing compliance, the relevant date for pricing has been stated as Thursday, July 30, 2026, which is 30 days prior to the shareholder meeting. The corrigendum also notes that the pricing methodology has been approved by the Board of Directors, and the clarifications are positioned as part of the explanatory statement for shareholders.

Allottees disclosed: promoter participation and allocation

The company has disclosed promoter and promoter group participation as a significant component of the proposed allotment. The promoter and promoter group allotment is stated at ₹15.18 crore, with the following number of warrants disclosed:

In addition to promoter group entities, the company has stated that non-promoter investors will also participate, although the provided details do not list their names in the excerpt.

Use of proceeds: working capital, capex, and corporate purposes

The company has indicated that proceeds from the preferential issue will be deployed across three primary areas. These include capital expenditure for business expansion, working capital requirements, and other general corporate purposes. The disclosures also state that a significant portion will be allocated to working capital.

This allocation is relevant for investors assessing whether the raise is aimed at expansion, liquidity support, or a mix of both. The corrigendum highlights that the explanatory statement around purpose and pricing was altered, signalling that the company wanted to align the AGM disclosure more clearly with how the Board has framed the fund-raising rationale.

Dilution, post-issue capital, and lock-in provisions

The company has stated that upon full conversion of all warrants, the post-issue capital will be ₹82,06,700, corresponding to 82,06,700 equity shares (8.2067 million shares). It has also disclosed that the resultant dilution is expected to be approximately 17.1% on full conversion.

Lock-in conditions have also been highlighted. The warrants and the underlying shares will be subject to lock-in as per SEBI ICDR Regulations. In addition, the pre-preferential allotment shareholding of the allottees will be locked-in for 90 trading days from the date of allotment.

Other AGM items: related party transaction limits

Apart from the warrant issue, shareholders will also vote on material related party transactions. The company has stated aggregate limits of ₹200 crore for transactions with the subsidiary Vaneera Industries Limited. Separately, aggregate limits of ₹1 crore each have been mentioned for key promoter directors for FY27.

These resolutions sit alongside the warrant proposal and can influence how investors assess promoter-linked transactions and governance processes, especially as the company seeks approval for both capital raising and related party thresholds in the same meeting cycle.

Financial results update and market reference points

Alongside the AGM-related disclosures, the company has stated that the Board deferred the approval of the unaudited standalone and consolidated financial statements for the quarter ended June 30, 2026, citing “unavoidable circumstances.” Investors will typically track subsequent disclosures for the rescheduled date and for any further details.

A market reference included with the information showed the stock at ₹129.45, down 4.46%, though the excerpt does not specify the exact timestamp for that price.

Key details at a glance

What investors should track next

The next formal checkpoint is shareholder voting at the AGM on August 29, 2026, including the special resolution for the preferential issue. Investors will also watch for subsequent corporate filings on the allotment process, including the final list of allottees and timelines for allotment and conversion.

Separately, the company’s deferred approval of the June 30, 2026 quarterly results is another near-term disclosure item. Any update on the rescheduled board meeting date for results, and subsequent regulatory filings, will be key for market participants tracking both financial reporting and the capital-raising process.