Uflex Seeks Shareholder Nod for Rs 5,000 Crore Borrowing Limit

Proposed Limit: Rs 5,000 Crore | Existing Limit: Rs 4,000 Crore

Reader Takeaway: The borrowing hike supports the new 54,000 MTPA BOPP film project, reflecting active capacity expansion plans.

What just happened

Uflex Limited has approached its shareholders via a postal ballot to approve a special resolution to increase its borrowing power. The company proposes lifting the limit from the current Rs 4,000 crore to Rs 5,000 crore, excluding interest and temporary loans obtained in the ordinary course of business. This move requires shareholder consent under Section 180(1)(c) of the Companies Act, 2013.

Why this matters

The company is currently scaling its operations, specifically through the construction of a new 54,000 MTPA BOPP film line at its Dharwad plant in Karnataka. Management indicates that the additional borrowing capacity is essential to meet debt drawdown requirements for this project, which is slated for commissioning in FY28. Securing this limit early ensures the company maintains financial flexibility to execute its growth strategy throughout FY27.

Voting Process

Shareholders as of the cut-off date of September 25, 2026, are eligible to participate. The voting process will be handled exclusively through remote e-voting. The window for casting votes opens at 9:00 a.m. on October 2, 2026, and will remain active until 5:00 p.m. on October 31, 2026. The final outcome and the scrutinizer’s report are expected by November 2, 2026.

Risks to watch

While the expansion signals growth, investors should monitor the company's debt-to-equity ratio as it draws down further capital. Execution risks at the Dharwad site, including potential cost overruns or delays in project commissioning, remain key variables for shareholders to track alongside interest rate volatility.