Vivek Singhal sold 3 lakh shares as ownership widened

Vivek Singhal sold 3 lakh equity shares at Rs 50 each on July 15 and July 16, 2026, for Rs 1.50 crore. The transfers followed an August 2024 rights issue in which renounced entitlements brought in three outside holders, and public ownership reached 11.49% of pre-issue capital before the proposed public issue.

What did Vivek Singhal sell in July 2026?

Vivek Singhal sold 3 lakh shares at Rs 50 per share through three transfers on July 15 and July 16, 2026. The transactions reduced Vivek Singhal’s holding from 57,09,995 shares after the December 2024 bonus issue to 54,09,990 shares, representing 43.06% of the 1.26 crore pre-issue equity shares. The transferred shares represented 2.39% of pre-issue capital.

The prospectus identifies Santosh Kataria as the holder of 60,000 shares in its pre-issue ownership table, although other transfer disclosures use variant spellings for that transferee. Ramesh Chandra Siroya held 1,65,000 shares, or 1.31% of pre-issue capital, after the July 16 transfer. The filing also states that none of the equity shares held by the promoters were pledged as of the red herring prospectus date.

How did renounced rights widen ownership before Vivek Singhal’s sale?

Renounced rights introduced three outside shareholders through an August 17, 2024 allotment of 5.72 lakh shares at Rs 35 each. A rights issue gives existing shareholders an entitlement to subscribe for new shares, while a renounced entitlement permits another applicant to subscribe when the holder gives up that entitlement. The company said the allotment was made against valid applications received for renounced rights in accordance with the issue terms and applicable laws.

Ajay Gangrade received 2.55 lakh shares, Jyoti Gangrade received 1.75 lakh shares and Gaurav Gangrade received 1.42 lakh shares in the August 2024 rights issue. At the stated issue price of Rs 35 per share, the 5.72 lakh-share allotment raised Rs 2.002 crore in cash. The company said its board approved the rights issue on August 4, 2024 to meet fund-based requirements.

The company then made a one-for-one bonus issue on December 23, 2024, allocating 62.82 lakh shares against the then-existing 62.82 lakh shares. The three August 2024 subscribers therefore held 5.10 lakh, 3.50 lakh and 2.84 lakh shares, respectively, before the proposed public issue. Their combined holding was 11.44 lakh shares, or 9.10% of pre-issue capital, before Vivek Singhal’s 3 lakh-share transfers added three further public holdings.

How concentrated was ownership after Vivek Singhal’s sale?

Promoters and the promoter group held 1,11,19,996 shares, or 88.51% of the 1.26 crore pre-issue shares, after the July 2026 transfers. Ravi Singhal held 57.10 lakh shares, or 45.45%, while Vivek Singhal held 54,09,990 shares, or 43.06%. Trisha Singhal and Priyal Singhal held two shares each, and three promoter-group members held two shares each.

The ownership mix differed from the prospectus comparison for one year earlier, when Ravi Singhal and Vivek Singhal each held 50.00% and were the only shareholders listed with at least 1% of paid-up capital. At the prospectus date, the six shareholders holding at least 1% accounted for 98.92% combined, including Ajay Gangrade at 4.06%, Jyoti Gangrade at 2.79%, Gaurav Gangrade at 2.25% and Ramesh Chandra Siroya at 1.31%. The change reflects the August 2024 allotment, the December 2024 bonus issue and the July 2026 transfers.

The company reported 13 shareholders at the red herring prospectus date, comprising seven promoter and promoter-group holders and six public holders. All 1.26 crore existing shares were in dematerialised form, meaning they were recorded electronically rather than as physical certificates. The public category held 14.44 lakh shares, or 11.49%, consisting of 11.44 lakh shares held by the three August 2024 rights subscribers after the bonus issue and 3 lakh shares transferred by Vivek Singhal.

How did the company’s capital change before the proposed issue?

Paid-up equity shares increased from 57.10 lakh after the October 31, 2023 rights issue to 1.26 crore after the August 2024 rights issue and December 2024 bonus issue. The company issued 10 lakh shares at Rs 25 each on October 31, 2023 and 5.72 lakh shares at Rs 35 each on August 17, 2024. Both were cash rights issues, while the December 2024 allotment was a bonus issue rather than a cash subscription.

The December 2024 bonus issue increased paid-up share capital from Rs 6.282 crore to Rs 12.564 crore, based on the Rs 10 face value of each share. A bonus issue capitalises reserves by issuing additional shares to existing holders without raising cash. The company said the bonus issue used reserves and surplus with a closing balance of Rs 9.247 crore as of October 31, 2024, and was intended to capitalise free reserves, enhance share liquidity and align paid-up capital with business growth and operational requirements.

The proposed issue is for up to 45.64 lakh shares and would increase paid-up shares to 1.71 crore. Up to 2.30 lakh shares are reserved for a market maker, while 43.34 lakh shares form the net public issue. A market maker is an exchange participant that provides buy and sell quotations to support trading liquidity; the prospectus states that the BSE SME platform requires a market maker to provide two-way quotes for at least 75% of a trading day.

What lock-ins and capital plans affect these holdings?

The prospectus designates 35.72 lakh promoter shares, equal to 20.85% of post-issue capital, as minimum promoter contribution subject to a three-year lock-in from allotment in the public issue. Minimum promoter contribution is the promoter holding required under the Securities and Exchange Board of India’s Issue of Capital and Disclosure Requirements Regulations. The company said these shares are eligible for the requirement and are not pledged.

A further 39.20 lakh promoter shares, or 22.89% of post-issue capital, are identified for a two-year lock-in. The prospectus also states that the remaining promoter and pre-issue public holdings of 50.72 lakh shares will be locked in for one year from public-issue allotment. The 3 lakh shares transferred by Vivek Singhal form part of the pre-issue public holdings subject to the stated one-year lock-in and depository procedures.

The company stated that, except as disclosed, it had no present intention or proposal for six months from the issue opening to split or consolidate its equity shares or make a further equity or convertible-security issue. It retained the ability to issue equity shares or equity-linked securities later to finance an acquisition, merger, joint venture, regulatory compliance or another arrangement approved by its board. The prospectus also reports no outstanding convertible securities, warrants or other rights to receive equity shares.

Conclusion

Vivek Singhal’s Rs 1.50 crore transfer was the second identified route through which public ownership expanded before the proposed issue. The August 2024 renounced-rights allotment created three meaningful outside holdings, the December 2024 bonus issue doubled those holdings, and the July 2026 transfers brought public ownership to 11.49% while promoters and the promoter group retained 88.51%.

The next disclosed ownership change is the proposed issue of up to 45.64 lakh shares, which would take total paid-up shares to 1.71 crore. The company says it will file an updated shareholding pattern one day before listing; that filing and the application of the one-, two- and three-year lock-ins will determine the reported post-issue ownership position.