Manab Rakshit has acquired a 4.99% stake in Amit International Limited through an off-market transaction on August 10, 2026. The acquisition of 9,44,824 equity shares brings Rakshit’s individual holding to 9,44,824 shares. When combined with the existing 9.96% stake held by his person acting in concert (PAC), Deepak Kumar Rai, the group’s total voting power in the company rises to 14.95%. This development marks a significant consolidation of ownership by non-promoter entities, moving the combined stake well above the 10% threshold often associated with substantial influence in listed companies.

The transaction was disclosed to BSE Limited on August 11, 2026, pursuant to Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The filing confirms that the shares were acquired through an off-market sale, a mechanism typically used for private transfers that do not impact open market trading prices immediately. There are no encumbrances, pledges, or liens on the shares acquired by Rakshit or held by Rai. Furthermore, neither party holds any warrants, convertible securities, or other instruments that would entitle them to additional voting rights in Amit International Limited.

Shareholding Structure Update

The following table details the change in shareholding for Manab Rakshit and Deepak Kumar Rai before and after the acquisition:

Amit International Limited’s total equity share capital remains unchanged at 1,89,47,700 equity shares with a face value of ₹10 each, totaling ₹18,94,77,000. The total diluted share/voting capital also stands at 1,89,47,700 shares, indicating no outstanding convertible instruments affect the current voting calculations.

What the Numbers Show

The acquisition positions Manab Rakshit as a major shareholder in his own right, while the combined entity of Rakshit and Deepak Kumar Rai now controls nearly 15% of the company’s voting rights. This level of ownership suggests a strategic alignment between the two parties, potentially aiming for greater influence over corporate governance or future strategic decisions without triggering the open offer obligations that typically arise at higher thresholds under SAST regulations. The use of off-market transactions for both recent acquisitions indicates a coordinated effort to accumulate stakes quietly, minimizing market volatility while establishing a substantial minority position.

Amit International Limited reported a net loss of ₹15.25 for the financial year ended March 31, 2026, alongside a qualified audit opinion citing non-provision for doubtful advances and non-compliance with regulatory accounting standards. The company’s auditor, Vinod S. Mehta & Co., highlighted lapses including the absence of actuarial valuation for employee benefits and incorrect initial measurement of financial assets. The Audit Committee and the Board of Directors reviewed and approved the statement on the impact of these qualifications on May 29, 2026.

Audit Qualifications and Financial Impact

The audit report identified six key areas of concern, though the adjusted financial figures remained unchanged from the audited figures reported before adjusting for qualifications. The primary qualification involved a non-provision for doubtful advances amounting to ₹232.26 Lakhs granted to Topson Iron Ore India Private Limited. The auditor stated that insufficient evidence regarding recoverability prevented the determination of the consequential impact on the financial statements.

Regulatory and Accounting Non-Compliances

Amit International failed to obtain mandatory registration under Section 45-IA of the Reserve Bank of India Act, 1934. Management attributed this lapse to the absence of new projects undertaken during the year. Additionally, the company did not recognize or provide for employee retirement benefits in accordance with Indian Accounting Standards (Ind AS) 19, accounting for them on a cash basis instead. The absence of an actuarial valuation report meant the liability could not be determined.

Valuation and Income Recognition Issues

The auditor drew attention to the valuation of certain investments at fair value based on financial information available as of March 31, 2021, due to the unavailability of updated financial statements from investee entities. Furthermore, loans and advances were not measured at fair value upon initial recognition as required under Ind AS 109, leading to potential misstatements in the carrying amount of financial assets and related finance income. The company also failed to charge interest on certain loans at the rate prescribed by Section 186 of the Companies Act, 2013, resulting in unrecognised interest income of ₹24.91 Lakhs and an understatement of income.

Financial Position

Despite the qualifications, the company’s reported financial metrics showed no adjustment. Total assets stood at ₹1991.24, while total liabilities and net worth were recorded at ₹1991.24 and ₹1958.57, respectively. Earnings per share (EPS) remained negative at -0.08.

Management confirmed it is looking into the matters raised by the auditor, while the auditor suggested the management address these issues on priority.