Sindhu Trade Links Approves Major Capital Enhancement and Strategic Acquisitions in Mining and Coal Sectors
Sindhu Trade Links Limited (STLL) announced that its Board of Directors approved a comprehensive set of business strategies on May 22, 2026. The board approved a significant increase in the company's Authorized Share Capital and approved two major strategic acquisitions—one in coal resources and another in mining and allied services—all discharged via a share swap mechanism.The Board also set the relevant date for the proposed preferential issuances and scheduled an Extraordinary General Meeting (EGM) to seek requisite shareholder approval for the matters.
Capital Structure Enhancement
In an effort to strengthen its financial foundation, the Board approved the increase in the Authorized Share Capital of the company. Previously, the Authorized Share Capital stood at INR 156,00,00,000/-. The revised Authorized Share Capital is approved at INR 196,00,00,000/-.This enhanced capital is structured as follows:
| Component | Total Value | Equity Shares (INR 1/- each) | Preference Shares (INR 1/- each) |
|---|---|---|---|
| New Authorized Capital | INR 196,00,00,000/- | 186,00,00,000 | 10,00,00,000 |
| Original Capital | INR 156,00,00,000/- | 156,00,00,000 | 0 |
The Board also approved the resulting alteration to the Capital Clause (Clause V) of the Memorandum of Association of the Company.
Strategic Acquisitions and Related Party Transactions
The board further approved two strategic acquisitions involving related party transactions, designed to consolidate the company’s asset portfolio. Both acquisitions will be discharged entirely through a share swap mechanism, pending shareholder and regulatory approvals.1. Acquisition of Advent Coal Resources Pte. Ltd. (Transaction A)
The Board approved the acquisition of 78.26% of the issued and paidup equity share capital of Advent Coal Resources Pte. Ltd., Singapore, representing 16,477 Equity Shares.
The consideration for this acquisition is the issuance and allotment of up to 30,04,55,230 fully paid-up Equity Shares of STLL. These shares carry a face value of INR 1/- and are issued at a premium of INR 22.20 per share on a preferential basis. The total consideration value for the acquisition is reported at INR 697.056 Crore.
Advent Coal Resources Pte. Ltd. is involved in developing a major integrated coal and infrastructure project in East Kalimantan, Indonesia. The company’s core business involves owning the economic interest in the MEC Coal Project.
2. Acquisition of Sainik Mining and Allied Services Limited (Transaction B)
For the second strategic move, the Board approved the related party acquisition of 50.10% of the issued and paid-up equity share capital of Sainik Mining and Allied Services Limited, representing 21,36,765 Equity Shares.
The consideration for this transaction involves the issuance and allotment of up to 9,71,67,757 Compulsorily Convertible Preference Shares (CCPS) of STLL. The CCPS have a face value of INR 1/- and are issued at a premium of INR 22.20 per CCPS. This investment has a total consideration value of INR 225.45 Crore.
Sainik Mining and Allied Services Limited operates in Mining and Allied Services, focusing on Mine Developer & Operator, Long Term Contracts, and outsourced services.
Details of Consideration and Shares Allotted
The consideration structure for both transactions details the share allotment for the selling shareholders of the target entities.Summary of Acquisitions and Consideration:
| Detail | Transaction A (Advent Coal Resources Pte. Ltd.) | Transaction B (Sainik Mining and Allied Services Limited) |
|---|---|---|
| Acquisition Percentage | 78.26% (16,477 Equity Shares) | 50.10% (21,36,765 Equity Shares) |
| Total Consideration | INR 697.056 Crore | INR 225.45 Crore |
| Consideration Instruments | Equity Shares of STLL | CCPS of STLL |
| Shares/Units Allotted | Up to 30,04,55,230 Equity Shares | Up to 9,71,67,757 CCPS |
| Premium per Unit | INR 22.20 | INR 22.20 |
Governance and Next Steps
The Board fixed May 19, 2026, as the 'Relevant Date' for determining the minimum floor price for the proposed preferential issuances.To finalize these transactions, the Board approved holding an Extraordinary General Meeting (EGM) of the Members on June 18, 2026, to seek necessary shareholder approval for the acquisitions and issuance of securities. The board also appointed Ms. Payal Sharma, Practicing Company Secretary, as the Scrutinizer for the EGM.
SINDHUTRAD Stock Price Movement
Today, Sindhu Trade Links Limited shares edged higher, closing at ₹27.04, up 3.05%. The stock saw significant activity in the close, with trading settling at 5.24 million shares today.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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