Covance Softsol promoter Mrs. Durga V. L. K. Madala gifted 1,77,600 equity shares to an immediate relative on August 28, 2026. The transaction reduces her direct holding slightly while maintaining her majority stake in the company.

The disposal was disclosed under Regulation 29(2) of the SEBI (Substantial Acquisitions and Takeovers) Regulations, 2011, and Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2011. The shares were transferred via gift, not through open market sale.

Shareholding Changes

Mrs. Madala held 1,58,79,710 equity shares representing 71.7% of the voting rights prior to the transfer. Following the gift of 1,77,600 shares (0.8% of capital), her holding adjusted to 97,11,408 shares, constituting 43.86% of the paid-up capital.

The total paid-up capital of the company is ₹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 significant drop in percentage holding from 71.7% to 43.86% despite a relatively small share count reduction suggests a discrepancy in the disclosed pre-transaction figures or a concurrent conversion/adjustment event not detailed in this specific disclosure. The post-transaction holding of 43.86% remains a substantial promoter stake, ensuring continued control.

Sambasiva Rao Madala, a member of the promoter group of Covance Softsol Limited , has proposed the acquisition of a significant stake in the company through an off-market transfer by way of gift. The transaction involves the transfer of 46,24,704 equity shares from Durga V L K Madala, another promoter, and is scheduled for completion on August 27, 2026.

The proposed acquisition falls under the exemption provided in Regulation 10(1)(a)(i) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Consequently, the acquirer is exempt from making an open offer. In compliance with Regulation 10(5) of the SEBI SAST Regulations, Madala submitted the requisite prior intimation to the BSE Limited on August 20, 2026.

Transaction Details

The transfer does not involve any monetary consideration, as it is executed as a gift. Therefore, metrics such as the volume-weighted average market price or specific acquisition prices are not applicable. Both the transferor and transferee have declared their intent to comply with the applicable disclosure requirements under Chapter V of the Takeover Regulations, 2011.

Impact on Shareholding Pattern

The transaction will significantly alter the individual shareholding structures within the promoter group while leaving the aggregate promoter holding unchanged. Prior to the transaction, Sambasiva Rao Madala held 1,77,600 shares (0.80%), while Durga V L K Madala held 1,43,36,112 shares (64.74%).

Post-transaction, Sambasiva Rao Madala’s stake will increase to 48,02,304 shares, representing 21.69% of the total share capital. Conversely, Durga V L K Madala’s holding will reduce to 97,11,408 shares, or 43.86%. The collective shareholding of the acquirer and persons acting in concert (PACs) remains constant at 1,58,79,710 shares, constituting 71.71% of the company’s equity capital.

What the Numbers Show

The data reveals a consolidation of voting power within the promoter group without any change in overall control. While the aggregate promoter stake remains static at 71.71%, the internal redistribution shifts significant ownership from Durga V L K Madala to Sambasiva Rao Madala. This suggests a strategic realignment of equity holdings among family members or associated entities within the promoter circle, rather than an external dilution or infusion of capital.