Himalaya Food International Board Approves Capital Increase and ₹43 Crores OTS Settlement

Himalaya Food International Limited's board of directors concluded their meeting on April 7, 2026, approving multiple strategic corporate decisions that were previously scheduled for consideration. The meeting, conducted through video conferencing from 09:30 A.M. to 09:55 A.M. (IST), addressed significant changes to the company's capital structure and financial arrangements.

Authorized Share Capital Enhancement Approved

The board has approved the increase in the company's authorized share capital, moving forward with the proposal to raise the capital ceiling from ₹90,00,00,000 to ₹150,00,00,000. This represents an enhancement of ₹60,00,00,000 in the company's authorized capital structure.

Parameter: Previous Approved Authorized Share Capital: ₹90,00,00,000 ₹150,00,00,000 Increase Amount: - ₹60,00,00,000 Implementation: - Subject to shareholder approval

Banking Settlement and Auditor Appointment

The board approved and took note of the final sanctions received from all four consortium banks on March 29, 2026, for concluding a One Time Settlement (OTS) worth ₹43 Crores, as approved in the Joint Lenders' Meeting. The board also ratified the release of ₹21.50 Crores to consortium banks on March 30, 2026, pursuant to sanction letters received from the banks, representing 50.00% of the total OTS amount.

Additionally, the board approved the appointment of M/s Kumar Rupak & Associates as the company's statutory auditor, subject to applicable regulatory approvals.

Settlement Details: Amount Total OTS Value: ₹43 Crores Amount Released: ₹21.50 Crores Percentage of OTS: 50.00% Release Date: March 30, 2026

Fund Raising Provisions and Legal Matters

The board approved enabling provisions for raising funds through multiple mechanisms, including conversion of outstanding loans as on March 31, 2026, and any further loans into equity shares up to ₹25 Crores, at the option of promoters and lenders. The provisions also include issuance of equity shares or other eligible securities to promoters and eligible investors, including strategic investors, through permissible modes such as rights issue, preferential issue, or other regulatory-compliant methods.

The board noted that the company has issued a formal Notice of Dispute to Simplot regarding the non-return of machinery, as required under the SIAC Final Award dated March 23, 2020.

Fund Raising Method: Details Loan Conversion Limit: Up to ₹25 Crores Conversion Date: Outstanding as on March 31, 2026 Conversion Option: Promoters and/or lenders Equity Issuance: Rights/preferential issue

EGM Preparations Finalized

The board approved convening an Extra-Ordinary General Meeting (EGM) of company members to seek shareholder approvals for the proposed resolutions. The meeting also approved the draft notice for calling the EGM and appointed a scrutinizer for conducting the voting process at the Extra-Ordinary General Meeting.

All approved matters will be implemented in accordance with applicable provisions of the Companies Act, 2013, and SEBI regulations. The company has formally notified BSE Limited about the board meeting outcomes under Regulation 30 of SEBI (LODR) Regulations, 2015.

Himalaya Food International Ltd. has announced a significant breakthrough in its financial restructuring with the approval of an extension for its One Time Settlement (OTS) from a consortium of lenders led by State Bank of India. The development marks a crucial milestone in the company's debt resolution process and provides a clear pathway for financial recovery, with strong recovery indicators emerging in stressed assets.

OTS Extension Details

The lender consortium has approved the extension of the OTS timeline till September 2026, providing the company with additional time to complete its debt settlement obligations. This extension represents a structured approach to debt resolution with defined milestones and achievable targets.

Parameter: Amount/Details Final Settlement Amount: ₹43.00 Crore Amount Already Deposited: ₹21.50 Crore (50%) Total Paid Till Date: ₹77.00 Crores Balance Amount Due: ₹21.50 Crores Extension Timeline: Till September 2026

Financial Progress and Recovery Indicators

The company has demonstrated strong execution credibility by already depositing ₹21.50 crore, representing 50% of the final settlement amount. With cumulative payments of ₹77.00 crores till date, Himalaya Food International has shown consistent commitment to honoring its obligations despite facing operational challenges. The company's stressed assets are showing strong recovery signs, indicating improved operational performance.

The company encountered significant setbacks including non-return of critical machinery by a joint venture partner despite a binding international arbitration award in March 2020, and force majeure impact from a fire at its Gujarat facility. Despite these challenges, the company continued servicing its obligations.

Management Perspective

Chairman & CEO Man Mohan Malik stated that this approval represents a defining moment for the company. He emphasized that the company has already demonstrated its intent and capability by paying ₹77.00 crores, including ₹21.50 crores under the revised OTS. With the extension now in place, he noted that the path to full closure is clear and fully achievable.

Strategic Implications

The OTS extension approval provides several strategic benefits for the company:

Balance Sheet De-risking: Legacy liabilities now have a defined and executable closure path

Banking System Endorsement: Strong reaffirmation of confidence by lenders led by State Bank of India

Value Unlock Potential: Clears pathway for asset monetization, capital infusion, and expansion of export-driven verticals

Asset Recovery: Strong recovery seen in stressed assets indicates improved operational efficiency

Growth Prospects

With financial clarity emerging and strong recovery indicators in stressed assets, the company is positioned to scale operations through export expansion to UK, Australia, and EU markets. The focus on high-margin value-added products is expected to improve operational leverage and margins significantly. The company remains confident of completing the balance ₹21.50 crores within the sanctioned timeline, which would result in a clean balance sheet and accelerated value creation.

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