Linde India Shares in Focus After Minority Shareholders Reject ₹417 Cr RPT Proposal

SYNOPSIS: Minority shareholders of an industrial and medical gases manufacturer rejected a Rs. 417 crore related-party transaction proposal at an EGM, marking another instance of shareholder opposition despite promoters holding a majority stake.

During Friday’s trading session, shares of a company involved in the manufacturing of industrial and medical gases are in focus on the stock exchanges, after minority shareholders rejected the company’s proposal to enter related party transactions worth Rs. 417 crore with an affiliate.

With a market cap of Rs. 57,937.8 crores, shares of Linde India Limited were trading in the green at Rs. 6,793.5 on BSE, up by around 1 percent, as against its previous closing price of Rs. 6,732.9. The stock has delivered positive returns of over 11 percent in the last one year, and has gained by around 12 percent in the last one month.

What’s the News

According to the latest disclosures from the stock exchanges, Linde India Limited informed that its minority shareholders have rejected a proposal to enter into related party transactions (RPTs) worth around Rs. 417 crore with affiliate Praxair for the FY26. The proposal was placed before shareholders at an Extraordinary General Meeting (EGM) but failed to secure the necessary approval.

As per the scrutinizer’s report, the resolution did not receive sufficient support from shareholders. A total of 170 members voted in favour with 15,79,994 votes (or 10.76 percent), while 974 members opposed the proposal with 1,30,99,840 votes (89.23 percent), resulting in the resolution being defeated.

The opposition was particularly strong among retail investors, where 100 percent of the votes were cast against the proposal. The promoter group currently holds around 75 percent stake in the company, while the remaining shares are held by public investors, including more than 66,000 retail shareholders. As per SEBI regulations, promoters and interested parties are not permitted to vote on RPT proposals.

This is the second instance in recent months where minority shareholders have expressed strong opposition to a company proposal. Earlier, on 13th February, the company sought shareholder approval to extend the tenure of its India Managing Director (MD), Milan Sadhukhan, by three years. Although about 42 percent of institutional investors voted against the proposal, it was ultimately approved as the promoter group supported the resolution.

For context, Linde AG and Praxair merged globally in 2018, following which Linde India and Praxair India entered into a joint venture arrangement. As part of the integration, Linde introduced business allocation protocols, under which certain operations were allocated to Praxair as part of a broader global restructuring.

Financials & More

Linde India reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 16 percent, from Rs. 606 crores in Q3 FY25 to Rs. 701 crores in Q3 FY26. Likewise, its net profit surged during the same period from Rs. 116 crores to Rs. 193 crores, representing a rise of more than 66 percent YoY.

Linde India Limited is primarily engaged in the business of manufacturing industrial and medical gases and the construction of cryogenic and non-cryogenic air separation plants.

The company supplies technology of choice among many semiconductor manufacturers, with its innovative technologies and solutions backed by a global supply chain to help achieve smarter, lower-cost, and more sustainable semiconductor manufacturing operations.

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