Linde India Faces Crucial Minority Shareholder Vote Today

Linde Faces Minority Shareholder Test for Rs 417 Crore RPTs with Praxair India

Company Overview Linde, the world's largest industrial gas supplier, is set to face a major shareholder test on March 5 as it seeks minority shareholder approval for Rs 417 crore worth Related Party Transactions (RPTs) with group entity Praxair India. Although the promoter group owns 75% of the company, they will not be able to vote on the resolution.

Background The development assumes significance as dealings between Linde and Praxair have been a flashpoint between Linde India and its minority shareholders. In 2018, following a global merger between Linde AG and Praxair, Linde India and Praxair India entered a joint venture and implemented "business allocation protocols." Investors complained, alleging that Linde India was giving away high-growth business segments to Praxair India without proper minority shareholder approval.

Regulatory Framework According to the Securities and Exchange Board of India (Sebi) rules, promoters or related parties cannot vote on RPT transactions. The resolution will need the majority of minority investors to support it for it to be approved. Rules call for mandatory shareholder approval in case the value of RPTs exceeds 10% of the consolidated turnover of the company.

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Previous Developments Linde sought shareholder approval extending the tenure of its India managing director Milan Sadhukhan by three years on February 13. Around 42% of institutional investors voted against the resolution, although it sailed through since the promoter group voted in favor. On April 29, 2024, Sebi passed an interim order against Linde following complaints from investors about Linde-Praxair transactions. The Securities Appellant Tribunal (SAT) dismissed Linde's plea on December 5, 2025, ruling that the "business allocation protocols" being followed by it were RPTs and needed shareholder approval.

Market Impact Linde has done well in 2026, surging 12% since January 1. Over 60,000 retail investors are invested in Linde, with stakes worth less than Rs 2 lakh. The outcome of the shareholder test on March 5 will be closely watched by investors and market analysts.