F MEC International Schedules May 4 EGM for ₹88.9 Lakh Bonus Issue, Share Split to ₹2 Face Value

F MEC International Financial Services Limited has called an Extra-Ordinary General Meeting (EGM) on May 4, 2026, to seek shareholder approval for key corporate actions, including a share subdivision and a bonus issue involving capitalisation of ₹8,891,768 from reserves, according to a company disclosure.

The meeting, scheduled at 12:30 PM via video conferencing, will also consider a management change involving the appointment of a whole-time director. The proposals aim to improve stock liquidity, expand investor participation, and strengthen governance.

Share Subdivision to Reduce Face Value to ₹2

The company’s board has proposed subdividing each equity share with a face value of ₹10 into five shares of ₹2 each. The move will not alter the overall paid-up capital but is expected to enhance affordability for retail investors.

Following the subdivision, the authorised share capital will be restructured to ₹1,500,000,000, divided into 75,000,000 equity shares of ₹2 each. The proposal also includes amendments to the capital clause of the Memorandum of Association to reflect the revised structure.

Stock splits are commonly undertaken to increase trading liquidity by reducing the per-share price, making the stock more accessible to a wider investor base.

₹88.9 Lakh Bonus Issue at 1:10 Ratio

In addition to the share split, the company plans to issue bonus shares in a ratio of 1:10, meaning shareholders will receive one additional share for every 10 shares held.

The bonus issue will be executed after the subdivision, with each share carrying a face value of ₹2. The company will capitalise ₹8,891,768 from its free reserves and securities premium account to fund the issuance.

The bonus shares will rank pari-passu with existing equity shares and will be issued exclusively in dematerialised form. Shareholders holding physical shares must provide demat account details to receive the bonus allocation, in line with regulatory requirements.

Under SEBI regulations, the company is required to complete the bonus issue within two months from the board approval date of April 8, 2026. Accordingly, the process is expected to be completed by June 2, 2026, subject to shareholder approval.

Board to Consider Appointment of Whole-Time Director

The EGM agenda also includes a proposal to appoint Mr Kabeer Chaudhary as Whole-Time Director for a five-year term effective April 8, 2026, following a change in his designation from Non-Executive Director.

Mr Chaudhary brings experience in financial services, particularly in deal sourcing and strategic leadership. He holds a graduate degree from Delhi University’s Hansraj College and an MBA from IIM Kolkata.

The proposed remuneration for the role is ₹100,000 per month. He currently serves on multiple board committees, including the Audit Committee and the Nomination and Remuneration Committee.

Voting Timeline and Participation Details

The company has set April 27, 2026, as the cut-off date to determine shareholder eligibility for voting. Remote e-voting will be open from May 1 to May 3, 2026, between 9:00 AM and 5:00 PM.

F MEC International has engaged National Securities Depository Limited (NSDL) to facilitate the e-voting process. Shareholders whose names appear in the register as of April 3, 2026, and have registered email addresses will receive electronic notices for participation.

The virtual EGM will accommodate up to 1,000 participants on a first-come-first-served basis, excluding promoters, institutional investors, and large shareholders, who will have unrestricted access.

The proposed share subdivision and bonus issue are aligned with the company’s strategy to enhance market liquidity and broaden its shareholder base. By lowering the face value and increasing the number of shares in circulation, the company aims to improve trading activity.

At the same time, the bonus issue serves as a mechanism to reward shareholders by converting reserves into equity, without impacting the company’s cash position.

The management change, including the appointment of a whole-time director, is expected to support operational and strategic execution as the company continues to expand its financial services business.

We expect to announce the results of the EGM resolutions on or before May 7, 2026.