Banganga Paper Overhaul: Ronak Jain Takes 71% Stake, Board Approves ₹34 Cr Issue

A New Chapter for Banganga Paper

Banganga Paper Industries Limited (BSE: 512025), formerly known as Inertia Steel Limited, is undergoing a significant corporate transformation following a major stake acquisition and a substantial capital infusion plan. The company has set a new strategic direction with the entry of a new promoter, Mr. Ronak Jain, who has acquired a controlling stake, and the subsequent approval of a multi-faceted preferential issue valued at nearly ₹34 crores. These developments signal a comprehensive overhaul of the company's ownership, governance, and financial structure.

The Landmark Acquisition Deal

The transition began on December 17, 2025, when Ronak Jain executed a Share Purchase Agreement to acquire a 70.96% stake in the company. The stake was purchased from the erstwhile promoters, namely Chetan Karbhari Dhatrak, Karbhari Pandurang Dhatrak, and Jayashree Karbhari Dhatrak. The transaction, valued at approximately ₹120 million, marked a complete change in control and was formally approved by the company's Board of Directors, paving the way for new leadership.

Mandatory Open Offer for Minority Shareholders

Following the acquisition of the controlling stake, a mandatory open offer was proposed to acquire the remaining 29.04% of the company's shares from the public. This is a standard regulatory requirement under SEBI guidelines to provide an exit opportunity for minority shareholders. The open offer was launched by Ronak Jain, Sarita Jain, Priyanka Jain, and K K Impex & Trading Private Limited, with a total consideration of approximately ₹50.44 million for the remaining stake. This step ensures compliance and fairness in the takeover process.

Strategic Capital Infusion via Preferential Issue

To fuel future growth and strengthen its financial position, the company sought and received shareholder approval for a significant preferential issue at an Extraordinary General Meeting (EGM) held on January 14, 2026. The total fundraising plan amounts to ₹33.79 crores and is structured through multiple instruments. This includes the issuance of 15.11 crore equity shares via share swap arrangements, 6 crore equity shares for cash consideration, and 2.2 crore convertible warrants, providing the company with both immediate and future capital.

Key Allottees in the New Structure

The preferential allotment solidifies the position of the new promoter group. The largest allocations are directed towards individuals associated with the new leadership, ensuring their strategic alignment and long-term commitment. The distribution of shares highlights the new ownership concentration.

This allocation gives Ronak Jain a direct holding of 9.31% from this specific issue, in addition to the stake acquired from the previous promoters.

Governance Overhaul: Board Reconstitution

Coinciding with the ownership changes, Banganga Paper Industries has also refreshed its Board of Directors. On December 16, 2025, the board approved the appointment of Mr. Venkatesh Prabhu and Mr. Ravindranathan M as Additional Directors in the category of Independent Directors. These appointments, effective immediately, are for a five-year term and are subject to final approval by shareholders at the next General Meeting. This move is aimed at strengthening corporate governance and bringing fresh perspectives to the board's oversight functions.

Market Implications and Future Outlook

The series of transactions, from the promoter stake sale to the large-scale capital raise, represents a pivotal moment for Banganga Paper Industries. The infusion of ₹33.79 crores is expected to provide the necessary resources for operational enhancements, potential expansion, or debt reduction. The new leadership under Ronak Jain, supported by a reconstituted board, is positioned to implement a new growth strategy. The unanimous shareholder approval for the preferential issue indicates strong confidence in the proposed direction. The market will be closely watching how the new management leverages this fresh capital to drive performance and create value for its stakeholders.

Conclusion

Banganga Paper Industries has decisively moved into a new era. The acquisition by Ronak Jain, the exit of the Dhatrak family, and the successful approval of a significant fundraising plan have fundamentally reshaped the company. With a new promoter, a strengthened balance sheet, and a refreshed board, the company is poised to embark on a new growth trajectory. The successful execution of its strategic plans will be critical in the coming quarters.