LCC Infotech EGM 2026: Shareholders Approve ₹121 Crore Fundraising

Introduction

LCC Infotech Limited has received a decisive mandate from its shareholders to proceed with a significant corporate overhaul. At the Extra-Ordinary General Meeting (EGM) held on February 2, 2026, all eight proposed resolutions were passed with overwhelming support. The approvals pave the way for a change in control, a substantial capital infusion of approximately ₹121.76 crore, and a strategic relocation of the company's registered office from West Bengal to Gujarat. These moves are set to redefine the company's operational and financial landscape.

A Unanimous Mandate for Change

The EGM results reflect strong shareholder confidence in the proposed new direction for the company. Key resolutions, including the alteration of the company's object clause and the office relocation, received near-unanimous approval. For instance, the resolution to shift the registered office was passed with 58,654,571 votes in favor and only 281 against, signaling a clear consensus on the strategic restructuring.

Strategic Relocation to Gujarat

One of the most significant operational changes approved is the shifting of the company's registered office to Gujarat. This move is part of a broader strategy to align the company's administrative base with its future business objectives. The decision, backed by a vast majority of shareholders, suggests a strategic pivot that could involve tapping into the business ecosystem of the new location. The company will now proceed with the necessary regulatory formalities to complete the transition.

Capital Infusion for Future Growth

At the core of the restructuring is a major fundraising plan designed to strengthen the company's financial position. Shareholders approved a two-part preferential issue aimed at raising a total of ₹121.76 crore. This includes the issuance of 4.2 crore equity shares and 22.56 crore convertible warrants. The capital is earmarked primarily for bolstering working capital and for general corporate purposes, providing the necessary fuel for the company's expansion and operational needs.

Financial Blueprint of the Capital Raise

The preferential issue is structured to bring in both a new promoter and capital from other investors. The issue price for both the equity shares and the convertible warrants has been set at ₹4.55 per unit, determined according to SEBI's regulations.

The New Promoter and Change in Control

The EGM resolutions formalize the entry of Mr. Kunjit Maheshbhai Patel as the new promoter. This follows a Share Purchase Agreement where Mr. Patel agreed to acquire a 45.85% stake from the existing promoters. His allotment of 4.2 crore equity shares solidifies his position and triggers a change in management control. This development had previously prompted a mandatory open offer to public shareholders, announced in January 2026, for an additional 26% stake at ₹3.55 per share.

Enhanced Financial Flexibility

In addition to the capital raise, shareholders approved an increase in the company's authorized share capital from ₹50 crore to ₹80 crore. This provides the company with the flexibility for future capital expansion. Furthermore, the board's borrowing powers have been enhanced to ₹250 crore, giving the management greater leverage to finance growth initiatives and manage liquidity effectively.

Leadership and Governance

Shareholders also ratified the appointment of Mr. Akhilkumar Dilipbhai Kotak as an Additional Executive Director, strengthening the company's leadership team during this transitional period. To ensure transparency in the use of the newly raised funds, which exceed ₹100 crore, Brickwork Ratings India Private Limited has been appointed as the monitoring agency. The agency will provide quarterly reports on the utilization of proceeds as per regulatory requirements.

Market Outlook and Key Considerations

While the successful EGM marks a positive step, the preferential issue of new shares and warrants will lead to a dilution of the existing shareholding. Investors will be closely monitoring the deployment of the new capital and its impact on the company's performance. The change in control and the new leadership's ability to execute the stated objectives will be critical for long-term value creation. The company's stock performance and subsequent financial reports will be key indicators of the restructuring's success.

Conclusion

The shareholder approvals at the February 2026 EGM have equipped LCC Infotech with a new promoter, a fortified balance sheet, and a clear strategic direction. With the necessary approvals in place, the company is poised to embark on a new chapter focused on growth and operational realignment. The immediate next steps will involve the completion of the preferential allotment, the open offer process, and the formal relocation of its registered office.