Karnavati Finance Limited Confirms Non-Large Corporate Status Under SEBI Debt Securities Framework

Karnavati Finance Limited has formally disclosed to BSE Limited that it does not qualify as a "Large Corporate" under the regulatory framework established by SEBI for debt securities issuance. The disclosure was made on April 30, 2026, in compliance with SEBI Circular SEBI/HO/DDHS/DDHSRACPOD1/P/CIR/2023/172 dated October 19, 2023.

Regulatory Compliance Disclosure

The company submitted its disclosure pursuant to SEBI's circular regarding fund raising by issuance of debt securities by Large Entities. Karnavati Finance Limited confirmed that it does not meet the criteria to be classified as a Large Corporate under the framework provided in the aforementioned circular. The disclosure was signed by Company Secretary Akanksha Roy and Chief Financial Officer Kush Morzaria.

Financial Position Summary

The company's annual disclosure revealed its borrowing position and financial standing as of March 31, 2026. The comprehensive financial data demonstrates the company's current debt structure and overall financial health.

Financial Parameter	Amount/Status
Outstanding Qualified Borrowings (April 1, 2025)	₹0 crores
Outstanding Qualified Borrowings (March 31, 2026)	₹0 crores
Incremental Borrowing During FY26	Not Applicable
Debt Securities Issuance During FY26	Not Applicable
Net Worth (March 31, 2026)	₹10.14 crores
Credit Rating for Unsupported Borrowings	Not Applicable

Corporate Structure and Operations

Karnavati Finance Limited operates with its administrative and corporate office located in Jamnagar, Gujarat, while maintaining its registered office in Mumbai, Maharashtra. The company holds CIN L65910MH1984PLC034724 and has been incorporated since 1984. The disclosure confirms the company's compliance with regulatory requirements while maintaining transparency regarding its borrowing activities and financial position.

The submission of the initial disclosure format for entities identified as Large Corporates demonstrates the company's adherence to SEBI's regulatory framework, even though it does not qualify under the Large Corporate classification. This proactive compliance approach ensures transparency with stakeholders and regulatory authorities regarding the company's debt securities framework status.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.41%	-2.04%	+27.43%	-11.66%	-31.10%	-90.56%

Karnavati Finance Limited has received substantial acquisition disclosures from three of its promoters under SEBI Regulation 29(2), indicating planned share purchases through open market transactions. The disclosures reveal coordinated acquisition plans by the promoter group to increase their shareholding in the BSE-listed financial services company.

Promoter Acquisition Details

The three promoters have filed separate disclosures outlining their acquisition plans for the period from December 2025 to March 2026:

Promoter	Current Holding	Shares to Acquire	Post-Acquisition Holding
Mr. Raman Pragjibhai Morzaria	2,96,88,769 shares (29.54%)	14,58,791 shares (1.45%)	3,11,47,560 shares (30.99%)
Mr. Kush R Morzaria	1,47,88,500 shares (14.71%)	17,58,750 shares (1.75%)	1,65,47,250 shares (16.46%)
Mrs. Daxaben R Morzaria	29,40,000 shares (2.93%)	10,05,000 shares (1.00%)	39,45,000 shares (3.93%)

Transaction Structure

All three promoters plan to execute their share acquisitions through open market purchases on the Bombay Stock Exchange (BSE), where Karnavati Finance Limited shares are listed. The acquisitions are proposed to be completed between December 2025 and March 2026, providing a four-month window for the transactions.

Company Capital Structure

Karnavati Finance Limited maintains a straightforward equity structure with the following parameters:

Parameter	Details
Total Equity Capital	₹10.05 crores
Number of Shares	10.05 crore shares
Face Value per Share	₹1.00
Listing Exchange	Bombay Stock Exchange (BSE)

The company's capital structure remains unchanged before and after the proposed acquisitions, with the total diluted share capital maintaining at ₹10.05 crores.

Regulatory Compliance

The disclosures have been filed in accordance with SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, specifically under Regulation 29(2). All three promoters have confirmed their status within the promoter group, with Mr. Raman Pragjibhai Morzaria identified as a promoter and the other two as promoter group members.

Current Holdings Analysis

Prior to the proposed acquisitions, the three promoters collectively hold significant stakes in the company. Mr. Raman Pragjibhai Morzaria holds the largest individual stake at 29.54%, followed by Mr. Kush R Morzaria at 14.71%, and Mrs. Daxaben R Morzaria at 2.93%. None of the promoters currently hold any encumbered shares, voting rights other than through equity shares, or convertible securities.

The planned acquisitions demonstrate the promoter group's confidence in the company's prospects and their commitment to maintaining strong control over the financial services entity. The open market purchase method indicates transparent price discovery for the additional stake acquisitions.