LCC Infotech Overhaul: Patel Takes Control in ₹121 Crore Deal

A New Chapter for LCC Infotech

LCC Infotech Limited is undergoing a significant corporate transformation following a series of strategic decisions culminating in a change of control. Shareholders have approved all resolutions at an Extra-Ordinary General Meeting (EGM) held on February 2, 2026, paving the way for Mr. Kunjit Maheshbhai Patel to take the helm. The restructuring involves a controlling stake acquisition, a mandatory open offer, a substantial capital infusion of over ₹121 crore, and a diversification into new business sectors.

The Mechanics of the Takeover

The change in control is being executed through a two-part transaction. Firstly, a Share Purchase Agreement (SPA) was signed on January 3, 2026, for Mr. Patel to acquire 5,80,42,357 equity shares from the existing promoters. This represents a 34.43% stake in the company. Secondly, a preferential allotment of 4,20,00,000 equity shares to Mr. Patel was approved. Together, these transactions will give him a controlling stake of 59.34% in LCC Infotech.

Mandatory Open Offer Details

The acquisition triggered a mandatory open offer to the public shareholders of LCC Infotech, as required by SEBI regulations. The offer, managed by Grow House Wealth Management Private Limited, allows public shareholders to sell their shares to the new acquirer at a predetermined price. The key objective is to provide an exit opportunity to minority shareholders following the change in management control.

Major Fundraising Through Preferential Issues

In a move to strengthen its financial position, LCC Infotech is set to raise approximately ₹121.76 crore. A corrigendum to the EGM notice detailed a revised plan for this capital infusion. The company will issue 4.2 crore equity shares to Mr. Kunjit Patel and 22.56 crore convertible warrants to non-promoters, both priced at ₹4.55 per unit. This price was determined based on SEBI's regulations, being the higher of the 90-day and 10-day volume-weighted average prices (VWAP).

The proceeds are earmarked for specific purposes. From the equity issue, ₹14.91 crore will be used for working capital and ₹4.20 crore for general corporate purposes. From the warrant conversion, ₹80.09 crore is allocated to working capital and ₹22.56 crore for general corporate needs.

Shareholder Sanction at EGM

The EGM held on February 2, 2026, was a pivotal event where shareholders provided overwhelming support for the board's restructuring proposals. All eight resolutions were passed with a significant majority. Key approvals included increasing the authorized share capital from ₹51 crore to ₹80 crore, shifting the company's registered office from West Bengal to Gujarat, and approving the large-scale preferential issues of shares and warrants. Shareholders also approved borrowing powers up to ₹250 crore and regularized Mr. Akhilkumar Dilipbhai Kotak as an Executive Director.

Market Performance and Financials

As of early March 2026, LCC Infotech's share price was trading around ₹4.36 - ₹4.48. The stock has seen a 52-week high of ₹7.19 and a low of ₹3.64. With a market capitalization of approximately ₹55 crore, the company's valuation metrics show a very high Price-to-Book (P/B) ratio of 116.99, while its Price-to-Earnings (P/E) ratio is not applicable, indicating negative or zero earnings. The company currently does not pay any dividends.

A New Strategic Direction

Beyond the financial restructuring, the new management plans to diversify LCC Infotech's business operations. The company, traditionally an IT training organization, is set to venture into new sectors including entertainment, jewelry, construction, and travel. This strategic pivot aims to create new revenue streams and drive future growth under the new leadership. The shift in the registered office to Gujarat aligns with the base of the new promoter, Mr. Kunjit Patel, an Ahmedabad resident.

Conclusion: The Path Forward

The successful EGM marks the beginning of a new era for LCC Infotech. With a new promoter in control, a significant capital infusion on the horizon, and a clear mandate for business diversification, the company is poised for a complete overhaul. The focus for investors and the market will now shift to the execution of these ambitious plans and how the fresh capital is deployed to generate value in its new business verticals.