Magellanic Cloud EGM: ₹492.39 Cr Fund Raise Plan 2026

EGM notice sets the agenda for a large fund raise

Magellanic Cloud Limited has published a newspaper advertisement dated July 03, 2026, confirming an Extra Ordinary General Meeting (EGM) on July 24, 2026. The meeting is scheduled to be conducted through video conferencing. The company is seeking shareholder approval for a preferential allotment aggregating ₹492.39 crore.

The proposal includes issuing both equity shares and convertible warrants at an issue price of ₹30 each. Alongside the fundraising plan, shareholders will also vote on increasing the NRI (Repatriable) and OCI aggregate ceiling and on certain transactions proposed under Section 185 of the Companies Act, 2013.

What the company plans to issue: shares and convertible warrants

The preferential issue comprises 3,74,28,573 equity shares and 12,67,00,000 convertible warrants. The issue price of ₹30 per instrument includes a face value of ₹2 and a premium of ₹28. The board approved the fund raise on June 25, 2026, under Sections 42 and 62 of the Companies Act, 2013.

For the convertible warrants, the company has disclosed an 18-month exercise period from the date of allotment. It has also stated that 25% of the warrant value is payable upfront, with the balance payable at the time of conversion. These terms matter for investors because they define the cash inflow timing and the potential future equity dilution.

Pricing reference and compliance points disclosed

The company has mentioned June 24, 2026 as the relevant date for pricing determination. The price has been determined based on the higher of the 10-trading day and 90-trading day volume weighted average prices on the National Stock Exchange of India Limited.

To comply with SEBI (ICDR) Regulations, 2018 for proceeds above ₹100 crore, Magellanic Cloud has appointed Brickwork Ratings as the monitoring agency. The monitoring agency is expected to oversee utilisation of the issue proceeds against the stated objects.

Three key resolutions shareholders will vote on

As per the details shared, the EGM will seek approval on three core resolutions. First is the preferential allotment of equity shares and convertible warrants aggregating ₹492.39 crore. Second is the increase in the aggregate ceiling for Non-Resident Indians (Repatriable) and Overseas Citizens of India from 10% to 24%.

The third resolution relates to approvals for transactions under Section 185 of the Companies Act, 2013. The entities named in the disclosure are MCRAY Xtend India Private Limited, Scandron Private Limited, and Motivity Labs Private Limited.

Where the ₹492.39 crore is planned to be used

Magellanic Cloud has outlined a detailed deployment plan for the proceeds across multiple business needs. The allocation includes ₹150 crore for a Phase-1 Drone Project in Hyderabad. It has also earmarked ₹150 crore for working capital and debt repayment.

A further ₹75 crore is allocated towards research and development of drone and Counter-UAV technologies. Another ₹100 crore is set aside for general corporate purposes. Additionally, ₹17.39 crore is earmarked for strategic acquisitions and technology investments.

Voting schedule and participation details

The EGM is scheduled for July 24, 2026 at 12:00 noon IST via video conferencing. The cut-off date for determining eligibility to vote is July 17, 2026. Remote e-voting opens on July 21, 2026 at 09:00 a.m. IST and closes on July 23, 2026 at 05:00 p.m. IST.

The company has indicated that shareholders can vote through their depository accounts using CDSL or NSDL e-voting systems. It has also stated that the EGM notice was sent to eligible members by email on June 19, 2026, and is available on the company website (www.magellanic-cloud.com).

Company profile and stated business direction

Magellanic Cloud Limited describes itself as an IT service organisation providing software solutions for mobile and desktop. Its offerings include digital transformation, product engineering and development, quality assurance, DevOps, data analytics, multi-cloud and DevOps automation, process automation, drone solutions, e-security and surveillance, enterprise security, and human capital solutions. The company also provides IT consulting services.

The company was incorporated in 1981 and is based in Hyderabad, Telangana. It was formerly known as South India Projects Limited. In the provided information, the company also references expansion into niche segments such as VR, AR, IoT, and RPAS technology.

Financial snapshot and recent profit figures cited

The provided information notes a March-quarter consolidated PAT of ₹30.27 crore (302.7 million rupees). It also states that the company’s profit is ₹114 crore for TTM, and ₹103 crore for Mar 2025 and Mar 2024.

Separately, it is stated that Magellanic Cloud Ltd’s net profit in Q4 2025-2026 was ₹29.49 crore, up 32.06% from the same period last year, with a 1.13% quarter-on-quarter increase. These figures frame the fund-raise discussion because they show the company is reporting profits while also planning capital deployment into manufacturing, R&D and acquisitions.

Stock and market datapoints mentioned alongside the EGM plan

The provided market data shows a share price close of ₹31.25, with a day high of ₹32.58 and a day low of ₹30.80. The company’s market capitalisation is stated at ₹1,879.71 crore. The data set also includes a PE ratio (TTM) of 16.36 and a ROE of 6.79, along with a ROCE of 9.91.

Historical returns shared include 1-month return of +29.82%, 3-month return of +43.74%, 1-year return of -58.33%, 3-year return of -31.73%, and 5-year return of +733.16%. The stock ticker symbol is stated as MAGL, and the company is noted as listed and traded on the BSE.

Prior EGM disclosures referenced in the information set

The provided information includes references to BSE-sourced EGM disclosures from earlier periods. It mentions the outcome and proceedings of an EGM held on February 03, 2026, and a scrutinizer’s report along with voting results dated February 04, 2026.

These references indicate that the company has previously published EGM outcomes and voting results through exchange channels, and the July 2026 EGM continues that disclosure pattern for a larger corporate action.

Why this EGM matters for shareholders

The July 24, 2026 resolutions bundle together capital raising, limits on NRI/OCI holdings, and approvals for Section 185 transactions. For shareholders, the immediate decision point is the preferential issue structure of equity and convertible warrants at ₹30, and the stated allocation to the drone manufacturing project in Hyderabad, working capital and debt repayment, R&D, and acquisitions.

The appointment of Brickwork Ratings as a monitoring agency also adds a compliance layer specific to large fundraising exercises. The next concrete milestone is the voting window from July 21 to July 23, 2026, followed by the EGM on July 24, 2026.

Investor contact details disclosed

For investor matters and grievance redressal, the information names Mr. Sameer Lalwani, Company Secretary, and provides the email address compliance@magellanic-cloud.com. The company’s address is listed as Dallas Center, 6th Floor, 83/1, Plot No A1, Knowledge City, Rai Durg, Hyderabad, Telangana - 500032.