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.

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.