Bhandari Hosiery Exports Limited has submitted a regulatory filing to BSE and NSE regarding a substantial acquisition of equity shares by promoter group entity Tikani Exports Limited through the company's recently concluded rights issue. The transaction resulted in a significant increase in Tikani Exports' shareholding position in the textile manufacturer.

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.

Regulatory Compliance and Exemptions

The acquisition falls under the exemptions prescribed under Regulation 10(4) of SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011. Tikani Exports Limited is exempt from the obligation to make an open offer under the regulations as the transaction qualifies as acquisition of shares beyond entitlement pursuant to a rights issue.

The exemption applies based on two key conditions:

• The acquirer has not renounced any of its entitlements in the rights issue
• The rights issue price is not higher than the ex-rights price of the target company shares

Filing and Documentation

Bhandari Hosiery Exports filed the mandatory report under Regulation 10(6) of SEBI regulations with both BSE (Scrip Code: 512608) and NSE (Symbol: BHANDARI). The company confirmed that all conditions mentioned in the regulations have been fulfilled prior to the allotment, ensuring compliance with regulatory requirements for the substantial acquisition.

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.