Step Two Corporation Board Approves Rs 3.99 Crore Preferential Issue

Total fundraising: Rs 3.99 crore; Authorised capital increase: Rs 7.85 crore to Rs 12.00 crore.

Reader Takeaway: Fresh capital infusion strengthens the balance sheet but results in equity dilution for existing shareholders.

What just happened

Step Two Corporation Ltd announced the outcome of its board meeting held on September 2, 2026. The board cleared two major financial proposals: an increase in the company's authorised share capital and a new preferential equity issuance. The company intends to raise approximately Rs 3.99 crore by issuing 23,50,000 equity shares to select non-promoter investors.

Why this matters

The preferential issue is priced at Rs 17 per share, which includes a face value of Rs 10 and a premium of Rs 7. The board has also proposed elevating the authorised share capital from Rs 7.85 crore to Rs 12.00 crore to accommodate this expansion. These moves signal the company's intent to inject fresh liquidity into its operations.

Proposed Allottees

The allotment is earmarked for three non-promoter individuals: Basanti Mehta (12,85,000 shares), Sunita Mehta (8,21,000 shares), and Pooja Mehta (2,44,000 shares). Following this issuance, these investors will hold approximately 13.19%, 8.43%, and 2.50% stakes in the company, respectively.

What changes now

All these decisions are subject to approval by the company's shareholders. The firm has scheduled its Annual General Meeting (AGM) for September 28, 2026, to seek the necessary special resolutions. Investors should keep a close watch on the AGM results, as these will determine whether the fundraising proceeds as planned.

What to track next

The primary focus for retail investors remains the outcome of the upcoming AGM. Additionally, shareholders should monitor how the management plans to deploy the fresh capital to drive growth or operational improvements once the allotment is finalized.