Gamco Board Approves Equity Shares Issue Worth Rs 215.3 Million

Nikunj Parikh - Mumbai Bureau Aug 17, 2026 1,100 Views

Gamco Limited’s Board of Directors approved a preferential issue of 4.3 million equity shares worth Rs 215.3 million at Rs 50 per share to non-promoter investors on August 17, 2026. The transaction requires shareholder approval at the September 16 AGM. M/s V Singhi & Associates was appointed internal auditor.

MUMBAI — Gamco Limited announced on Monday, August 17, 2026, that its Board of Directors has approved a preferential issue of equity shares to raise up to Rs 215.3 million (Rs 21,52,98,000). The capital raise will be executed through the allotment of up to 4,305,960 equity shares to investors in the non-promoter category, subject to approval from the company’s shareholders and regulatory authorities. The announcement was made following a meeting of the company's board held in Kolkata.

Board Approves Capital Injection via Preferential Allotment

The board meeting of Gamco Limited commenced at 1:00 PM and concluded at 7:30 PM on August 17, 2026. According to the regulatory disclosure filed with BSE Limited under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the shares will be offered at an issue price of Rs 50 per share. This includes a face value of Rs 2 per share and a premium of Rs 48 per share.

The preferential issuance is being carried out in accordance with Chapter V of the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2018, and relevant provisions of the Companies Act, 2013. The issue will raise an aggregate cash consideration of Rs 21,52,98,000, assuming full subscription by the non-promoter allottees.

Annual General Meeting Scheduled for September 16

To seek member approval for the preferential issue and other special business, the Board of Directors approved the draft notice for the upcoming Annual General Meeting (AGM). The AGM is scheduled to take place on Wednesday, September 16, 2026.

In compliance with Regulation 161 of the SEBI ICDR Regulations, the company fixed Monday, August 17, 2026, as the "Relevant Date" for calculating the floor price of the preferential issue. This date marks the mandatory 30-day period prior to the date of the convened AGM.

Non-Promoter Shareholding Impact and Allottees Details

The capital issuance involves 44 designated entities and individuals belonging exclusively to the non-promoter category. Following the completion of the preferential allotment, the company's total equity base will expand to 58,337,460 shares. The aggregate post-issue holding of these new proposed allottees will rise from 0.12% (65,551 shares) to 7.49% (4,371,511 shares) of the post-allotment capital.

Major allottees in the transaction include:

Thermic Steel Co Pvt Ltd: Allocated 400,200 equity shares (0.69% post-issue shareholding).
Ram Krishna Agarwal: Allocated 400,000 equity shares (0.69% post-issue shareholding).
Jenuine Advisory Pvt Ltd: Allocated 300,000 equity shares (0.51% post-issue shareholding).
Eragon Sales Private Limited: Allocated 200,000 equity shares (0.34% post-issue shareholding).
Akansha Banquet LLP: Allocated 200,000 equity shares (0.34% post-issue shareholding).
Ujesh Banquets Private Limited: Allocated 200,000 equity shares (0.34% post-issue shareholding).
Drolia Agencies Pvt Ltd: Allocated 200,000 equity shares (0.34% post-issue shareholding).

Internal Auditor Appointment for FY 2026-27

In addition to the equity capital raise, the Board approved the appointment of M/s V Singhi & Associates, Peer Review Chartered Accountants (FRN: 311017E), as the Internal Auditor of the company for the financial year 2026-27. The appointment was made based on the recommendation of the company's Audit Committee. M/s V Singhi & Associates is an established Indian accounting firm with nearly five decades of professional standing.

Official Sources Section

According to official filings submitted by Gamco Limited to BSE Limited on August 17, 2026, signed by Company Secretary Monika Kedia, the proposed issuance remains subject to regulatory oversight and shareholder consent at the upcoming AGM.

Quote Section

According to officials, "The Board of Directors at their meeting held today have considered and approved the issuance of up to 4,305,960 equity shares on a preferential basis to non-promoter entities for an aggregate consideration of Rs 215.3 million, subject to member and regulatory approvals."

Why It Matters

The fund infusion of Rs 215.3 million provides Gamco Limited with fresh capital to support its operational requirements and corporate initiatives. For existing retail shareholders and market investors, the issuance expands the capital base by 7.38%. The involvement of institutional and individual non-promoter investors demonstrates continued private market investment in listed micro-cap equities.

Key Facts at a Glance

Total Consideration: Rs 215.29 million (Rs 21,52,98,000).
Total Shares Issued: Up to 4,305,960 equity shares.
Price Per Share: Rs 50 (Face Value Rs 2 + Premium Rs 48).
Allottee Category: Non-Promoter (44 entities/individuals).
AGM Date: Wednesday, September 16, 2026.
Internal Auditor: M/s V Singhi & Associates (FY 2026-27).

FAQ Section

What did Gamco Limited approve on August 17, 2026? Gamco Limited's board approved a preferential issue of up to 4,305,960 equity shares at Rs 50 per share to non-promoter investors to raise Rs 215.3 million.

When will shareholders vote on the preferential share issuance? Shareholders will vote on the proposed preferential issue during the Annual General Meeting scheduled for September 16, 2026.

Who are the investors receiving shares in the preferential issue? The shares are being issued to 44 non-promoter category allottees, including corporate bodies like Thermic Steel Co Pvt Ltd, Jenuine Advisory Pvt Ltd, and individual investors.

What is the issue price of the new Gamco shares? The issue price is set at Rs 50 per equity share, consisting of a Rs 2 face value and a Rs 48 share premium.

Who was appointed as Gamco's Internal Auditor? The board appointed M/s V Singhi & Associates, Peer Review Chartered Accountants, as the Internal Auditor for FY 2026-27.