Sarla Performance Fibers disclosed that Hindustan Cotton Company, a member of its promoter group, acquired an additional 3,264 equity shares on September 16, 2026. The acquisition was executed through the open market.

The purchase brings Hindustan Cotton Company’s total holding to 4,76,90,471 shares, representing 59.9858% of the total voting capital. This marks a marginal increase from the previous stake of 4,76,87,207 shares, or 59.9817%.

What the Numbers Show

The acquisition is a routine adjustment within the promoter group’s consolidated holding. With no encumbrances or pledges reported on the newly acquired shares, the move reinforces the promoter group’s control without altering the company’s diluted share capital structure, which remains at 7,95,03,000 shares.

Regulatory Disclosure Details

The disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011. Key details from the filing include:

Mrs. Sarladevi Madhusudan Jhunjhunwala, partner at Hindustan Cotton Company, signed the disclosure letter dated September 17, 2026. The company’s Managing Director, Krishna Madhusudan Jhunjhunwala, forwarded the disclosure to the BSE and NSE on September 18, 2026.

Sarla Performance Fibers Limited reported its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, amid a qualified audit opinion from its statutory auditors. The Board of Directors approved the results at a meeting held on August 05, 2026, in compliance with Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Investors should note that the qualified opinion stems from pending regulatory approvals regarding a strategic transaction with the company's wholly owned US subsidiary, Sarlaflex Inc., rather than operational underperformance.

The qualification in the limited review reports issued by M/s. C N K & Associates LLP, Chartered Accountants, relates specifically to the sale of 11% Non-Cumulative Redeemable Preference Shares held by Sarla Performance Fibers in Sarlaflex Inc., USA. The auditors noted that this transaction is pending receipt of necessary regulatory approvals. Management has applied for the requisite approvals and is actively pursuing the matter with the Authorised Dealer to obtain clearance at the earliest opportunity.

In adherence to regulatory norms, Sarla Performance Fibers submitted a Statement on Impact of Audit Qualifications alongside the financial results, as mandated by Regulation 33(3)(d) of the SEBI Listing Regulations. This disclosure ensures transparency regarding the specific area of qualification and its potential impact on the financial statements. The full format of the quarterly results is available on the company's website and the stock exchange portals.

Regulatory Compliance and Disclosure

The company complied with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, by publishing newspaper advertisements pertaining to the unaudited financial results. The advertisements were published in Gujarat Guardian, including a Gujarati translation, and Financial Express in all English editions on August 06, 2026. These filings were submitted to the National Stock Exchange of India Ltd. and BSE Limited for information and records.

Key Disclosures

The qualified opinion does not reflect any irregularities in the company's day-to-day operations but highlights a procedural delay in cross-border regulatory clearances. Shareholders are advised to monitor subsequent filings for updates on the status of these approvals.