Bhandari Hosiery Exports Limited has submitted regulatory filings to BSE and NSE regarding significant developments in its rights issue, including substantial share acquisition by promoter group entity Tikani Exports Limited and subsequent revision in fund utilization plans due to under-subscription.

Major Shareholding Changes Through Rights Issue

Tikani Exports Limited dramatically expanded its stake in Bhandari Hosiery Exports through participation in the rights issue, including subscription to shares arising from renunciation of entitlements by other promoters. The acquisition encompasses shares beyond Tikani's original entitlement, with renunciations coming from key promoters Nitin Bhandari and Nitika Rashesh Shah.

Promoter Group Shareholding Structure

The rights issue resulted in changes across the promoter group shareholding pattern, with various entities adjusting their positions following the capital raising exercise.

Board Approves Revised Fund Utilization Plan

The company's Board of Directors has approved a revision in the utilization of funds raised through the rights issue due to 48.44% under-subscription. The Chairman explained that limited banking days between fund release and March 2026 prevented complete deployment within the original timeline. The company utilized ₹678 lakhs towards repayment of MSME creditors, suppliers of raw materials, dyes, chemicals, consumables, and rights issue expenses.

Regulatory Compliance and Exemptions

The acquisition by Tikani Exports Limited falls under exemptions prescribed under Regulation 10(4) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. The entity is exempt from making an open offer as the transaction qualifies as acquisition beyond entitlement pursuant to a rights issue. The exemption applies based on two key conditions: the acquirer has not renounced any entitlements and the rights issue price is not higher than the ex-rights price of the target company shares.

Bhandari Hosiery Exports filed mandatory reports under SEBI regulations with both BSE (Scrip Code: 512608) and NSE (Symbol: BHANDARI), confirming compliance with all regulatory requirements for the substantial acquisition and fund utilization revision.

Bhandari Hosiery Exports Limited has filed a regulatory disclosure under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, following the allotment of equity shares to promoter group entity Tikani Exports Limited under the recently concluded rights issue.

Rights Issue Allotment Details

The company successfully completed the allotment of 9,29,06,781 equity shares to existing shareholders through the rights issue mechanism. The allotment was conducted in accordance with the Letter of Offer and the basis of allotment finalized by the Registrar to the Issue in consultation with BSE Limited as the designated stock exchange.

Promoter Group Stake Enhancement

Tikani Exports Limited, a promoter group entity, received an allotment of 6,48,32,425 equity shares under the rights issue, significantly increasing the promoter group's shareholding in the company. This acquisition falls under the exemptions prescribed under Regulation 10(4) of SEBI regulations.

Board Meeting for Fund Utilization Modification

The company has announced a board meeting scheduled for April 6, 2026, to consider modification in the utilization of funds raised through the Rights Issue. The meeting has been convened in response to the under subscription of the issue, requiring strategic adjustments to the fund deployment plan.

Regulatory Compliance and Disclosure

The company has submitted the mandatory disclosure received from Tikani Exports Limited to both BSE and NSE, ensuring full compliance with SEBI regulations. The disclosure confirms that Tikani Exports Limited is exempt from making an open offer under the takeover regulations as all prescribed conditions have been fulfilled.

Subscription and Allotment Summary

The rights issue received investor response during the subscription period from March 6, 2026 to March 20, 2026. The company processed applications systematically across different categories of investors, though the issue experienced under subscription necessitating the upcoming board review.

The successful completion of the rights issue allotment and the scheduled board meeting demonstrate the company's proactive approach to capital management and regulatory compliance while adapting fund utilization strategies based on subscription outcomes.