F Mec International Approves Stock Split, Bonus Issue, and ₹5 Cr NCD Fundraising

The board of F Mec International Financial Services Ltd has given the green light to several key corporate actions, including a stock split, a bonus share issue, and a debt fundraising plan. These decisions, made during a board meeting on April 8, 2026, aim to reshape the company's share structure and financial standing.

Key Decisions

F Mec International Financial Services Ltd's board approved a sub-division of its equity shares in a 1:5 ratio. This means each existing share will be split into five. Alongside this, the company plans a 1:10 bonus equity share issue, giving shareholders ten bonus shares for every one they hold.

To fund growth, the company will also raise up to ₹5 crore by issuing secured, unlisted Non-Convertible Debentures (NCDs). These NCDs will carry an annual interest rate of 16% and have a tenure of 18 months.

Additionally, Mr. Kabeer Choudhary's appointment as an Executive Director was approved, strengthening the company's leadership team.

Why This Matters

The proposed 1:5 share sub-division is intended to make F Mec International's stock more affordable and accessible for a broader range of retail investors, potentially boosting trading liquidity. The 1:10 bonus issue aims to reward existing shareholders by increasing their stake without requiring them to invest more money.

The ₹5 crore raised through NCDs will provide the company with fresh capital, which can be used for operational expansion or other working capital needs. However, it also introduces a fixed interest expense of 16% per annum on the raised amount.

Impact on Shareholders and Company

These approved actions will lead to several changes:

• Shareholders will see the number of shares they own increase following the bonus issue, while the face value of each share will decrease after the sub-division.
• The total number of outstanding equity shares will rise significantly, which could impact earnings per share calculations.
• The company's balance sheet will reflect additional debt financing with a set schedule for interest payments.
• Mr. Kabeer Choudhary's role as Executive Director adds executive leadership to the company's governance.

Key Risks to Monitor

It's important to note that all these corporate actions, including the share split, bonus issue, and NCD issuance, are contingent upon receiving necessary approvals from the company's shareholders. This approval will be sought at an upcoming Extraordinary General Meeting (EGM).

Furthermore, failure by the company to meet its interest or principal repayment obligations on the NCDs could result in an additional penalty interest charge of 2% per annum.

Next Steps and Tracking

Investors will be closely watching the shareholder voting at the Extraordinary General Meeting (EGM), scheduled for May 04, 2026. The remote e-voting period for shareholders concludes on April 27, 2026.

The company targets completion of these corporate actions – the share split, bonus issue, and NCD issuance – by June 02, 2026. Additionally, tracking management's detailed plans for how the ₹5 crore raised via NCDs will be utilized will be crucial for understanding future growth strategies.