Harish Textile Engineers Limited's board approved a preferential issue of 21,23,800 equity shares at ₹64 per share to raise ₹13,59,23,200. The issue targets 35 investors from promoter and non-promoter categories, with most allotments against credit balances. An EGM is scheduled for March 11, 2026, to seek shareholder approval for the fund-raising initiative.
Harish Textile Engineers Limited announced that its Board of Directors has approved a significant fund-raising initiative through a preferential issue of equity shares. The board meeting, held on February 10, 2026, at the company's registered office in Mumbai, concluded with the approval of issuing up to 21,23,800 fully paid-up equity shares to raise funds aggregating up to ₹13,59,23,200.
Preferential Issue Details
The company plans to issue equity shares with specific pricing and structure as outlined by the board:
Parameter Details Face Value ₹10 per share Issue Price ₹64 per share Securities Premium ₹54 per share Total Shares 21,23,800 shares Total Amount ₹13,59,23,200 Number of Investors Up to 35
The preferential issue will be conducted on a private placement basis, targeting investors from both promoter and non-promoter categories. The issuance is structured in accordance with Section 42 and Section 62 of the Companies Act, 2013, along with SEBI ICDR Regulations and other applicable laws.
Investor Allocation Structure
The proposed allotment reveals a diverse investor base with varying investment amounts. Notable allocations include significant stakes to promoter group members and external investors:
Major Allocations:
Sandeep Kirtikumar Gandhi: 5,54,600 shares (₹3,54,94,400)
Shovan Sandeep Gandhi: 5,25,000 shares (₹3,36,00,000) - Cash
Shaiv Sandeep Gandhi: 5,25,000 shares (₹3,36,00,000) - Cash
Mukesh Dalichand Sheth: 1,05,000 shares (₹67,20,000)
Hiren Rasiklal Doshi: 1,00,000 shares (₹64,00,000)
The majority of allotments are structured as "issue against credit balance" rather than cash payments, with only three investors making cash payments totaling ₹7,03,20,000.
Regulatory Approvals and Timeline
The preferential issue is subject to multiple approvals, including shareholder consent and regulatory clearances. The company has scheduled an Extraordinary General Meeting (EGM) for Wednesday, March 11, 2026, to seek member approval for the proposed fund raise.
The board meeting commenced at 2:00 PM and concluded at 6:05 PM, indicating comprehensive deliberations on the proposal. The company has submitted the required disclosures under Regulation 30 of SEBI Listing Regulations to BSE Limited, where the company trades under scrip code 542682.
Strategic Implications
This preferential issue represents a significant capital raising exercise for Harish Textile Engineers Limited, with the funds expected to support the company's growth initiatives and operational requirements. The mix of cash and non-cash considerations suggests a strategic approach to debt conversion and fresh capital infusion, positioning the company for enhanced financial flexibility.
Harish Textile Engineers Limited has disclosed that conciliation proceedings initiated by M/s. Deep Industries before the Micro and Small Enterprises Facilitation Council (MSEFC) have been terminated, with the matter now proceeding to arbitration under the MSMED Act, 2006.
Order Details and Timeline
The company received a communication from the MSEFC, District Industries Center – Ahmedabad, on 06th February, 2026, regarding Application bearing D.P. No. 5337 in the matter of M/s. Deep Industries, Ahmedabad vs. Harish Textile Engineers Limited. The council terminated the conciliation proceedings under Section 18(2) of the Micro, Small and Medium Enterprises Development Act, 2006, citing unsuccessful resolution.
Parameter: Details Authority: Hon'ble Micro and Small Enterprises Facilitation Council (MSEFC), Ahmedabad, Gujarat Application No.: D.P. No. 5337 Date of Receipt: 06th February, 2026 Method of Receipt: By post Legal Provision: Section 18(3) of MSMED Act, 2006
Nature of Dispute
The proceedings involve alleged delayed payment to M/s. Deep Industries, which is registered as a Micro and Small Enterprise (MSE) under the MSMED Act. The dispute has now been referred for arbitration proceedings under Section 18(3) of the MSMED Act, 2006, following the unsuccessful conciliation attempt.
Company's Response and Impact Assessment
Harish Textile Engineers Limited is currently examining the contents of the MSEFC communication in consultation with its legal advisors. The company has committed to taking appropriate steps in accordance with applicable laws and within prescribed timelines.
Assessment Area: Current Status Financial Impact: No material impact identified at this stage Operational Impact: No material impact on operations Legal Review: Under examination with legal advisors Next Steps: Appropriate legal action within prescribed timelines
Regulatory Compliance
The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This follows the company's earlier intimations dated 19th April, 2024, 10th February, 2025, 12th March, 2025, 12th June, 2025, and 25th July, 2025, related to the same proceedings initiated by Deep Industries.
The company has provided detailed information as required under SEBI regulations, including the nature of alleged violations, timeline of communications, and potential impact assessment. The matter represents a transition from conciliation to formal arbitration proceedings under the MSMED framework for dispute resolution.
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