Sindhu Trade Links EGM clears ₹922.5 cr deals in 2026

What shareholders approved on June 18

Sindhu Trade Links Limited (STLL) received shareholder approval at its Extraordinary General Meeting (EGM) held online on June 18, 2026 for a capital restructuring and two strategic acquisitions. The proposals covered an increase in authorised share capital and the purchase of majority stakes in Advent Coal Resources Pte. Ltd. and Sainik Mining and Allied Services Limited. The company said all four resolutions were passed with over 99.99% approval from public shareholders. The approvals included two Ordinary Resolutions and two Special Resolutions, aligning the capital structure with the securities to be issued for the transactions. The EGM also cleared material related party transactions connected to these deals.

Four resolutions and the voting outcome

Shareholders approved two Ordinary Resolutions relating to (1) the increase in authorised share capital and the consequential alteration of the capital clause of the Memorandum of Association (MoA), and (2) the approval for proposed material related party transactions. Two Special Resolutions were also approved to execute the Advent Coal transaction and to complete the Sainik Mining acquisition. The company’s disclosures indicated the public shareholder approval exceeded 99.99% for the resolutions. The structure of approvals matters because both acquisitions are planned through preferential allotments rather than cash payments.

Authorised share capital to rise to ₹196 crore

A key enabling step cleared at the EGM was an increase in STLL’s authorised share capital from ₹156 crore to ₹196 crore. The company also approved amendments to the MoA to reflect the revised capital clause. This move is intended to provide the headroom required for issuing new equity shares and preference shares under the preferential issue route. The company’s updated disclosures indicated the expanded authorised capital would allow issuance of equity shares and preference shares within the revised limits.

Transaction A: Advent Coal deal via equity share swap

STLL approved the acquisition of a 78.26% stake in Singapore-based Advent Coal Resources Pte. Ltd. The total consideration for this transaction is ₹697.056 crore. The consideration will be discharged through issuance of 30,04,55,030 new equity shares to designated selling shareholders. The issue price disclosed for these equity shares is ₹23.13 per share.

The Special Resolution for Advent Coal also covered governance and transaction mechanics mentioned in the EGM disclosures, including a valuation review, exchange ratios, lock-in provisions and declarations regarding ultimate beneficial ownership (UBO). These elements were specifically presented as part of the approvals sought from shareholders.

Transaction B: Sainik Mining acquisition funded through CCPS

The EGM also approved STLL’s plan to acquire a 50.1% equity shareholding in Sainik Mining and Allied Services Limited. The disclosure specifies this comprises 21,36,765 equity shares of Sainik Mining. The total consideration for this acquisition is ₹225.45 crore. Unlike the Advent transaction, the consideration here will be settled through issuance of 9,71,76,757 Cumulative Compulsorily Convertible Preference Shares (CCPS) by STLL on a preferential basis.

The CCPS are disclosed to be convertible on a 1:1 basis into equity shares within 18 months. The company described the structure as a share swap arrangement based on an agreed exchange ratio.

Preferential issue details and lock-in conditions

STLL’s updated EGM notice and corrigendum included pricing and lock-in details for the preferential securities. The independent valuer, Mr. Rajan Sahdev, determined the equity share price at ₹23.13. The company also disclosed that the equity shares and CCPS issued under the preferential route will be subject to SEBI lock-in requirements. The lock-in period specified is 18 months for the Promoter Group and 6 months for others.

The company fixed May 19, 2026 as the relevant date for pricing the preferential allotments. This relevant date is used for determining the minimum issue price under applicable regulations.

Summary of key numbers

What this means for investors and the capital structure

The approvals confirm STLL is pursuing expansion through non-cash consideration, using equity issuance and CCPS to complete the acquisitions. This approach changes the capital structure primarily through new securities issued under preferential allotment. The company also disclosed that current promoter holding remains unchanged at the 75% cap post-CCPS conversion, indicating attention to the post-transaction shareholding limits.

The EGM approvals also indicate that related party transaction clearances were part of the shareholder agenda. For investors tracking dilution and governance, the disclosed issue price, the number of securities to be issued, and the lock-in conditions are central to assessing how the transactions are structured.

Why the EGM approvals matter

The EGM outcome effectively clears the corporate action requirements to proceed with both Transaction A and Transaction B, along with the necessary capital and MoA changes. The disclosures show that the Advent Coal transaction includes defined elements such as valuation assessment, exchange ratio and lock-in provisions, while the Sainik Mining acquisition uses CCPS with a specified conversion timeline. With shareholder authorisation in place, the next steps depend on executing the preferential allotments and completing the acquisitions as approved.

Conclusion

Sindhu Trade Links’ June 18, 2026 EGM approved a rise in authorised share capital to ₹196 crore and cleared two acquisitions worth a combined ₹922.506 crore through equity and CCPS issuance. The company has also disclosed the issue price, conversion terms, and SEBI lock-in conditions that will apply to the preferential allotments, forming the key guardrails for execution.