Sangla family gifted 8,302,434 shares to four trusts

Sangla family members gifted 8,302,434 equity shares to Shubhangi Trust, Shreya Trust, Aishwarya Trust and Ananda Trust during 2025 at a nil transfer price. Following a 1:1 bonus issue on February 18, 2026, the four trusts held 16,604,868 shares, equal to 47.56% of the company’s 34,911,340 pre-offer equity shares.

How did the Sangla family move shares into family trusts?

The Sangla family moved four large equity blocks through secondary transfers recorded as gifts rather than company allotments or cash purchases. Monika Sangla transferred 1,743,190 shares to Shubhangi Trust on February 14, 2025; Mukesh Sangla transferred 3,531,531 shares to Shreya Trust on July 8, 2025; Saurabh Sangla transferred 1,556,047 shares to Aishwarya Trust on July 24, 2025; and Avantika Sangla transferred 1,471,666 shares to Ananda Trust on August 22, 2025.

Each transfer involved equity shares with a face value of Rs 10 per share, a stated transfer price of nil and “Gift of Shares” as the consideration. The four blocks totalled 8,302,434 shares before the February 2026 bonus issue. The secondary-transaction entries therefore record a change in registered ownership without a disclosed cash payment.

What changed in the Sangla family’s formal ownership structure?

The Sangla family’s disclosed ownership shifted from four individual holders to four separately named trust holders, with no new shares issued on the 2025 gift dates. In the table for two years before the red herring prospectus, Mukesh Sangla held 4,708,708 shares, Monika Sangla held 2,324,253 shares, Saurabh Sangla held 2,074,729 shares and Avantika Sangla held 1,471,666 shares.

After the gifts and before the 1:1 bonus issue, Mukesh Sangla held 1,177,177 shares, Monika Sangla held 581,063 shares and Saurabh Sangla held 518,682 shares. Avantika Sangla was no longer separately listed among holders of 1% or more, while Shreya Trust held 3,531,531 shares, or 20.23% of the then 17,455,670 shares outstanding. Shubhangi Trust held 9.99%, Aishwarya Trust 8.91% and Ananda Trust 8.43%.

The change was a transfer of existing holdings rather than dilution caused by an allotment. The company states that it had not issued equity shares for consideration other than cash or through bonus issues since incorporation, except for listed historic matters, and that it had no preference share capital as of the red herring prospectus date. The four 2025 entries appear in the disclosure of secondary transactions by promoters and promoter-group members.

How did the February 2026 bonus issue affect Sangla family trust stakes?

The February 18, 2026 bonus issue doubled the four trust holdings without changing their percentage ownership. The company issued one fully paid-up equity share for every one share held, lifting total equity shares from 17,455,670 to 34,911,340 and paid-up equity share capital from Rs 17.46 crore to Rs 34.91 crore.

Shreya Trust’s holding increased from 3,531,531 shares to 7,063,062 shares, and Shubhangi Trust’s increased from 1,743,190 to 3,486,380 shares. Aishwarya Trust rose from 1,556,047 to 3,112,094 shares, while Ananda Trust rose from 1,471,666 to 2,943,332 shares. Because the 1:1 bonus ratio applied across the share register, each trust’s ownership percentage remained the same.

Which Sangla family trusts are promoters and promoter-group holders?

Shubhangi Trust and Shreya Trust are classified as promoters, while Aishwarya Trust and Ananda Trust are classified as promoter-group holders in the pre-offer shareholding table. The distinction means the four trusts are not presented as a single regulatory category, although all received shares through the four disclosed 2025 gifts.

The two promoter trusts held 10,549,442 shares, or 30.22% of pre-offer capital. Shreya Trust held 7,063,062 shares, or 20.23%, making it the largest named shareholder in the disclosed list; Shubhangi Trust held 3,486,380 shares, or 9.99%. The full promoter category, including Mukesh Sangla, Saurabh Sangla, Monika Sangla and Swan Irrigation LLP, held 17,000,278 shares, or 48.70%.

The two promoter-group trusts held 6,055,426 shares, equal to 17.34% of pre-offer capital. The wider promoter group held 16,549,056 shares, or 47.40%, including Mukesh Sangla HUF, corporate shareholders, Shri Balaji Starch & Chemicals LLP and the two trusts. Promoters and the promoter group together held 33,549,334 of 34,911,340 shares, or 96.10%, while three public shareholders held 3.90%.

What do the nil acquisition costs show?

The nil acquisition prices show that the four 2025 trust blocks were reported as gifts, not as company shares issued at a nil issue price. The average-cost disclosure states that Shubhangi Trust and Shreya Trust had nil average acquisition cost because their shares were acquired through gifts and the February 2026 bonus issue.

The distinction appears in the broader secondary-transaction record. Several transfers in March and April 2022 were reported at Rs 45 per share, while transfers involving Signet Impex Private Limited and Signet Tradelinks Private Limited in August 2026 were reported at Rs 90 per share. The four trust transfers instead report nil price and gifts, so the prospectus supplies no cash purchase price for the 8,302,434-share blocks.

The weighted average cost of acquisition for all shares transacted in the 18 months preceding the red herring prospectus was Rs 8.47 per share, with a disclosed range from nil to Rs 90. The company attributes the nil end of that range to gifts and bonus acquisitions. The disclosure does not provide a valuation of the four gifts, trust deeds, beneficiary details or the family’s purpose for adopting the trust structure.

Conclusion

The Sangla family’s four 2025 gifts placed 8,302,434 existing shares into Shubhangi Trust, Shreya Trust, Aishwarya Trust and Ananda Trust without disclosed cash consideration. The February 2026 1:1 bonus issue doubled those holdings to 16,604,868 shares while preserving their percentages, leaving the trusts with 47.56% of pre-offer capital and promoters plus the promoter group with 96.10%.

The next disclosed change to watch is the post-offer ownership position, because the pre-offer and post-offer table remained marked for update at the prospectus stage. The red herring prospectus also states that at least 20% of fully diluted post-offer equity capital held by promoters is to be locked in for 18 months from allotment under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations, subject to final prospectus-stage details.