Cineline India Limited has pledged 65,00,000 equity shares with Vistra ITCL (India) Limited to secure the issue of Non-Convertible Debentures (NCDs). The transaction, which took place on June 24, 2026, increases the total encumbered shares held by Vistra ITCL in its capacity as Debenture Trustee to 35.13% of the paid-up share capital.

Vistra ITCL disclosed the filing under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The disclosure was submitted to BSE Limited and the National Stock Exchange of India Limited on July 22, 2026. The acquirer clarified that it does not belong to the promoter or promoter group of the target company.

Shareholding Details

The pledge of 65,00,000 shares represents 18.97% of the company's total voting capital. Prior to this acquisition, Vistra ITCL held 56,00,000 encumbered shares, accounting for 16.34% of the capital. The total equity share capital of Cineline India Limited stands at 3,42,66,434 shares with a face value of ₹5 each.

The filing notes that the primary responsibility for compliance with SEBI regulations lies with the lender or debenture holder, rather than the trustee. However, Vistra ITCL stated it made the disclosure out of abundant caution in its capacity as security trustee and debenture trustee.

Cineline India Limited has submitted a revised disclosure to the stock exchanges regarding the encumbrance of shares by its promoters, detailing the specific lenders involved in the transaction. The filing, submitted on July 15, 2026, addresses a query from the exchanges regarding an earlier submission under Regulation 31(1) and 31(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The revised document now includes the names of 19 debenture holders and identifies Vistra ITC (India) Limited as the security trustee.

The disclosure confirms the creation of a pledge on 65,00,000 equity shares on June 24, 2026. The shares were pledged by promoters Himanshu Kanakia and Rasesh Kanakia, both individually and in their capacities as trustees of the Vrutant Benefit Trust and Ashish Benefit Trust, respectively. The encumbrance was established to provide collateral security for the promoters' personal borrowing, with no involvement of the listed company or its group entities in the transaction.

Breakdown of Pledged Shares

The promoters pledged varying portions of their holdings to secure the funds. Himanshu Kanakia and Rasesh Kanakia each pledged 2,00,000 shares, representing 0.58% of the total share capital. In their roles as trustees, Himanshu Kanakia (for Vrutant Benefit Trust) and Rasesh Kanakia (for Ashish Benefit Trust) pledged 30,50,000 shares each, accounting for 8.90% of the total share capital per trust. The total value of the shares on the date of the event was reported as ₹27.30 crore against an involved amount of ₹2 crore.

Lender and Trustee Details

The revised filing explicitly names the entities in whose favor the shares are encumbered. Vistra ITC (India) Limited is named as the Security Trustee. The list of 19 debenture holders includes individuals and entities such as Shashwat Belapurkar & Deepika Belapurkar, Sanjeev Bajaj & Meena Bajaj, ANS Ventures, and Richard Shuenn Ching Liu. The complete list of lenders is provided in the filing to ensure full compliance with regulatory requirements.

The disclosure confirms that the encumbered shares do not constitute 50% or more of the respective promoter shareholdings, nor do they amount to 20% or more of the company's total share capital. The funds raised through this encumbrance are strictly for the personal use of the promoters and are not related to any debt instruments of the company.