Madhya Bharat Agro Products Approves Boosted Borrowing Powers and Share Sub-division

Madhya Bharat Agro Products Approves Boosted Borrowing Powers and Share Sub-division​

Madhya Bharat Agro Products Limited announced that its Board of Directors, at a meeting held on May 26, 2026, approved several significant corporate enhancements, including increasing borrowing limits and undertaking a share sub-division.

The Board unanimously approved enhancements to the company’s financial capacities, subject to subsequent shareholder approval. The enhancements include:

• Increasing borrowing powers under Section 180(1) (c) of the Companies Act, 2013, up to a revised limit of Rs. 2500 Crores.
• Enhancing the limit for the Board to create mortgages, pledges, charges, and hypothecations on assets under Section 180(1) (a) of the Companies Act, 2013, up to a revised limit of Rs. 2500 Crores.
• Enhancing limits under section 185 of the Companies Act, 2013, up to a revised limit of Rs. 300 Crores.

In addition to these financial approvals, the company’s capital structure is set to undergo a sub-division. The Board approved the sub-division of one equity share with a face value of Rs. 10 (Rupees Ten only) into five equity shares with a face value of Rs. 2 (Rupee Two only) each, both fully paid-up. The company will also alter the Capital Clause of its Memorandum of Association accordingly.

The authorized share capital of the company will read as: 'V. The Authorized Share Capital of the Company is Rs. 1,10,00,00,000/- (Rupees One Hundred Ten Crores only) divided into 55,00,00,000 (Fifty-Five Crores) Equity Shares of Rs. 2/- (Rupees Two Only) each.'

Strategic Funds and Directorship Updates​

In addressing future financial requirements, the Board noted that the previous proposal for issuing securities up to an aggregate amount of Rs. 1,000 Crore could not be pursued due to prevailing market conditions. Therefore, the Board decided to seek fresh shareholder approval by way of a Special Resolution for issuing further securities up to an aggregate amount of Rs. 1,000 Crore. This issuance could take place in one or more tranches through permissible modes including private placement, preferential issue, public issue, rights issue, qualified institutions placement (QIP), or any combination thereof, and shall supersede the earlier resolution of the same amount.

Regarding governance, the Board recommended the continuation of Directorship of Mr. Paras Mal Surana as a Non-Executive Independent Director upon attaining the age of 75 years for shareholder approval at the ensuing 29th Annual General Meeting.

Annual General Meeting Logistics​

Furthermore, the Board fixed Wednesday, June 24, 2026, at 11:00 A.M. IST as the date for the Annual General Meeting and approved the Draft Notice for the meeting to be held through Video Conferencing / Other Audio-Visual Means. The Board also set June 17, 2026, as the Record Date for the purpose of the payment of the final dividend and determining members eligible for e-voting at the Annual General Meeting.

The company also considered and appointed Mr. Sourabh Bapna, a Practicing Company Secretary, to act as Scrutinizer for the E-Voting process, and appointed National Securities Depository Limited (NSDL) for facilitating E-Voting.

MBAPL Stock Price Movement​

Today, Madhya Bharat Agro Products Limited shares edged higher to close at ₹548.45, achieving a gain of 0.46%. The stock traded on a volume of 215,208 shares, finding its range between ₹539 and ₹561 during the session.