Covance Softsol Limited disclosed that Sambasiva Rao Madala, a member of the promoter group, acquired 46,24,704 equity shares via an off-market gift transfer from Durga V L K Madala on August 28, 2026, representing 20.88% of the paid-up share capital.

The transaction was an inter-se transfer between immediate relatives under Regulation 10(1)(a)(i) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Sambasiva Rao Madala is the father-in-law of Durga V L K Madala. The acquisition was executed at nil consideration, as shares were transferred by way of gift. The company filed the requisite report under Regulation 10(7) of the Takeover Regulations with SEBI on September 9, 2026, within 21 working days of the acquisition date.

Shareholding changes for key promoter group members

The transaction resulted in a significant redistribution of shareholding within the promoter group, while the aggregate promoter and promoter group holding remained unchanged at 71.71% of total share capital. The table below details the pre- and post-transaction shareholding of each promoter group member.

Regulatory compliance and transaction details

The key parameters of the transaction are summarised below.

The total equity share capital of Covance Softsol remained unchanged at Rs.22,14,55,330, comprising 2,21,45,533 equity shares of Rs.10 each, both before and after the transaction. The applicable filing fee of Rs. 1,50,000/- plus GST at 18% was remitted via NEFT on September 9, 2026.

Disclosures under insider trading regulations

Separate disclosures were filed by both Sambasiva Rao Madala and Durga V L K Madala under Regulation 7(2) read with Regulation 6(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015. Durga V L K Madala's holding fell from 1,43,36,112 shares (64.74%) to 97,11,408 shares (43.86%) following the gift. Both disclosures were submitted to BSE Limited on August 31, 2026. The transaction was executed exclusively on an off-market basis and no derivatives trading was reported in connection with this transfer.

Covance Softsol promoter group member Sambasiva Rao Madala acquired 46,24,704 equity shares, representing 20.88% of the paid-up capital, via an off-market gift from immediate relative Durga V L K Madala on August 31, 2026.

The transaction was disclosed under Regulation 10(6) of the SEBI (Substantial Acquisitions and Takeovers) Regulations, 2011, relying on the exemption provided in Regulation 10(1)(A)(i) for transfers to an immediate relative. Prior intimation was filed with BSE Limited four working days before the transaction, as required under Regulation 10(5).

Shareholding Changes

Prior to the transfer, the promoter group held a combined 71.71% stake. Mrs. Madala held 1,43,36,112 shares (64.74%), while Mr. Madala held 1,77,600 shares (0.8%). Following the gift of 46,24,704 shares, Mr. Madala’s holding increased to 48,02,304 shares (21.69%), and Mrs. Madala’s holding decreased to 97,11,408 shares (43.86%).

The total paid-up capital of the company remains ₹22,14,55,330, comprising 2,21,45,533 equity shares. The exchange where the disposal was reported is BSE Limited.

What the Numbers Show

The transfer consolidates a significant portion of the promoter holding under Mr. Madala while reducing Mrs. Madala’s direct stake. Despite the shift in individual holdings, the aggregate promoter group stake remains unchanged at 71.71%, ensuring continued control over the company. The post-transaction holding of 43.86% for Mrs. Madala remains a substantial promoter stake.