Digilife Technologies Limited EGM: Major Business Transformation and Strategic Acquisitions Approved

Singapore, 6 November 2025 – Digilife Technologies Limited held its Extraordinary General Meeting (EGM) at The Hive, Level 9 Lounge, High Street Centre, Singapore, with significant developments that could substantially affect the company’s future direction and share value. The meeting, led by Chairperson Ms. Chada Anitha Reddy, was attended by the full Board of Directors, key management, auditors, financial advisers, sponsors, and shareholders both in-person and online.

Key Resolutions Passed at the EGM

• Strategic Diversification into Construction and Real Estate Sectors
  • The company received shareholder approval to diversify its core business from the sunset telecom and IT sectors into manufacturing and distribution of construction materials and real estate services. The new business scope includes high-growth products like Autoclaved Aerated Concrete (AAC) blocks, fly ash bricks, ready-mix concrete, tiles, steel products, and architectural glass solutions, as well as real estate development, leasing, property management, and infrastructure contracting for residential, commercial, and industrial projects.
  • The rationale for this shift is grounded in the limited growth prospects of Digilife’s legacy businesses and the strong opportunities in India’s rapidly expanding construction market, which is the world’s third largest. The company emphasized its commitment to ESG principles, with a focus on sustainable building materials, aligning with global trends for carbon reduction and sustainability.
  • Shareholders overwhelmingly supported this change, with over 99% approval in the poll vote.
• Acquisition of 51% Stake in Brimax AAC Products LLP
  • Another critical resolution approved was the acquisition of a 51% partnership interest in Brimax AAC Products LLP, a company specializing in sustainable building materials in India. The transaction is classified as a major transaction under the Catalist Rules.
  • This acquisition is expected to provide Digilife with immediate access to expertise and operations in the high-growth construction materials sector. Brimax’s focus on eco-friendly, high-demand products is seen as a logical step for Digilife’s new business direction.
  • The resolution passed with over 99% approval, indicating strong shareholder confidence in the new strategy.
• Disposal of Entire Shareholding in Bharat IT Services Ltd.
  • Shareholders also approved the disposal of Digilife’s entire stake in Bharat IT Services Ltd., marking a clear and complete exit from its legacy IT business. This disposal, also a major transaction under Catalist Rules, is part of the company’s broader strategy to reallocate capital into higher growth, future-ready sectors.
  • The disposal received 99.5% approval in the poll, indicating near-unanimous support for the company’s transformation.

Shareholder Q&A: Addressing Key Investor Concerns

• Rationale and Readiness for Diversification
  • Management highlighted that the decision to diversify was based on comprehensive research and a strategic review of growth prospects. The focus on India’s construction boom and ESG-aligned products was emphasized as a long-term value driver.
  • To ensure successful execution, Digilife appointed Ms. Shivani Srivastva Wadhwa as Executive Director and Vice Chairperson. Ms. Wadhwa brings over 20 years of international experience in hospitality, real estate, and smart city development, lending credibility to the company’s new direction.
  • A newly formed management team with expertise in large-scale projects is expected to facilitate the transition into the construction and real estate sectors.
• Financial Impact and Concerns on Net Tangible Assets (NTA)
  • Questions were raised on the sharp drop in NTA per share and a significant increase in loss per share post-transactions. Management clarified that the decline in NTA is a result of the disposal and acquisition, and the losses stem from Brimax’s historical underperformance while operating below full capacity.
  • Management assured shareholders that the actual post-acquisition performance will be reflected in upcoming financial results and expects profitability as Brimax ramps up to full capacity in the future. The NTA per share is expected to be approximately 0.89 cents post-transaction, though this is illustrative and not a forecast.
• No Confusion with Brimax Argentina
  • It was clarified that Brimax AAC Products LLP (India) has no relation to a similarly named company in Argentina, eliminating any potential confusion for investors.
• Potential Company Name Change
  • The Board will review whether to change the company name following the completion of the Brimax acquisition.

Key Takeaways for Investors

• Transformative Shift: Digilife Technologies is fundamentally transforming its business model, exiting legacy sectors and investing in high-potential, ESG-aligned construction and real estate sectors in India.
• Major Transactions Approved: The approval of both the acquisition of Brimax AAC Products LLP and the disposal of Bharat IT Services Ltd. are substantial moves that reshape the company’s asset base and future earnings profile.
• Short-Term Financial Impact: Investors should note the initial decline in NTA per share and reported losses due to Brimax’s historical underperformance. However, management expects these metrics to improve as the new business scales up.
• Leadership and Execution: The appointment of an experienced executive team, particularly Ms. Shivani Srivastva Wadhwa, is intended to ensure a smooth and competent transition into the new business areas.
• Shareholder Support: The overwhelming approval for all resolutions signals strong investor confidence in the new strategy, although the significant change in business focus may alter the company’s risk and return profile.

Potential Price-Sensitive Information

• The strategic exit from legacy businesses and entry into high-growth sectors could significantly affect future earnings and share value, depending on the successful execution of the new strategy.
• The temporary decrease in NTA and increased loss per share may weigh on the stock price in the short term, but the long-term outlook depends on Brimax’s ramp-up to full capacity and profitability.
• Any future decision on a company name change and additional disclosures regarding the performance of the new business could further influence the share price.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should refer to official company filings and consult their financial advisers before making any investment decisions. The author and publisher assume no responsibility for any losses or damages arising from reliance on this report.

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