What’s new

• EGM called for July 6 to approve material RPTs with three group entities totalling ₹100 crore.
• Limits: ₹50 cr with Madhav Ashok Ventures, ₹40 cr with Madhav Surfaces, ₹10 cr with Madhav Natural Stone.
• Proposed exposure equals 303% of the company's ₹33 cr market cap, an unprecedented scale for a nano-cap.

Why it matters

Minority shareholders are being asked to authorise related party dealings larger than the entire company's market value. Two of the counterparties have auditor-flagged going-concern issues, raising the risk that public money is funnelled to entities in financial distress. The governance bar for a firm with a ₹33 cr market cap just got much higher.

What we’re watching

• Whether institutional and retail shareholders vote the resolutions down or demand caps tied to net worth.
• Any dissent from independent directors or auditors at the EGM.
• Future disclosures if the limits are approved, specifically how quickly they are utilised.

The full read

Madhav Marbles and Granites, a ₹33 crore market-cap tile maker, has called an EGM for July 6, 2026 to approve related party transaction limits of ₹100 crore. That is three times its entire market value. The breakdown: ₹50 crore for Madhav Ashok Ventures, ₹40 crore for Madhav Surfaces, and ₹10 crore for Madhav Natural Stone Surfaces. Two of those entities carry auditor going-concern qualifications. A corporate guarantee of ₹18.06 crore is already outstanding to Madhav Ashok. For a nano-cap that previously conducted only minor RPTs, this is a leap in scale and risk. Promoters Madhav Doshi and Riddhima Doshi are directly interested. The vote will test whether minority shareholders see this as a necessary business expansion or a governance red flag.

Primary source: BSE · NSE