Prostarm Infosystems is seeking shareholder approval to quintuple its borrowing limit from Rs 200 crore to Rs 1,000 crore, a 400% jump, as part of a broader plan to strengthen its financial flexibility and support growth initiatives. The company has issued a postal ballot notice detailing the proposed special resolutions.
Key Details of the Proposal
- Current Borrowing Limit: Rs 200 crore
- Proposed Borrowing Limit: Rs 1,000 crore
- Increase: 400%
- Other Powers Sought: Enhanced authority for granting loans, guarantees, and investments
The proposals follow the company’s listing on the stock exchange on June 3, 2025, which has increased Prostarm Infosystems’ visibility, operational scope, and financial responsibilities.
Objective and Rationale
- Support Expanded Operations: The higher borrowing limit will enable the company to meet growing capital requirements and operational needs.
- Enhance Financial Flexibility: It will allow Prostarm Infosystems to capitalize on new business opportunities, fund strategic initiatives, and manage working capital efficiently.
- Future Growth: The resolutions aim to provide a robust framework for financing potential investments and long-term growth plans.
Shareholder Participation
Shareholders are required to vote on these resolutions through a postal ballot. The outcome will directly influence the company’s financial strategy and its ability to pursue expansion and investment plans in the coming years.
Summary
Prostarm Infosystems has proposed increasing its borrowing limit fivefold to Rs 1,000 crore and sought additional powers for loans, guarantees, and investments. This move, coming after the company’s stock exchange listing in June 2025, is designed to enhance financial flexibility, support business expansion, and enable capitalisation on growth opportunities. Shareholder approval via postal ballot is now being sought to implement the changes.
Disclaimer:
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