Kati Patang Lifestyle Limited issued a first reminder notice on August 29, 2026, urging shareholders to pay the outstanding first and final call on partly paid-up equity shares. The company set a deadline of September 15, 2026, for the payment of ₹10 per share. Failure to comply will render the shares liable for forfeiture.

The notice pertains to the rights issue approved in July 2025, where the company allotted 1,02,56,651 partly paid-up equity shares at an issue price of ₹20 per share. Shareholders initially paid ₹10 as application money. The remaining balance of ₹10 constitutes the first and final call.

Payment Status and Outstanding Amounts

The company reported receiving the first and final call money on 71,16,572 shares. Consequently, it allotted fully paid-up equity shares to these holders on April 27, 2026. As of the notice date, 31,40,079 partly paid-up equity shares remain unpaid. These shares carry a face value of ₹10 each but have a paid-up value of only ₹5 each.

Payment Window and Methods

Shareholders must remit the payment between September 1, 2026, and September 15, 2026. The company waived interest charges for payments made within this period. Payments are accepted only via NEFT or RTGS into the designated Punjab National Bank account. Cash payments and part payments are strictly prohibited. Third-party payments may be rejected unless verified with scanned cheque copies.

Forfeiture and Conversion Process

The notice warns that non-payment during the stipulated period will lead to the forfeiture of the partly paid-up equity shares, including the amount already paid. This action aligns with the Companies Act, 2013, and the company's Articles of Association. Upon successful payment, the depositories will convert the partly paid-up shares into fully paid-up ordinary shares under ISIN INE237C01016. This corporate action is estimated to complete within two weeks of the payment deadline.

What the Numbers Show

The conversion rate of the rights issue reveals significant participation gaps. While approximately 69% of the allotted shares (71,16,572 out of 1,02,56,651) have been fully paid, roughly 31% remain outstanding. This indicates that a substantial portion of eligible shareholders either declined to exercise their rights fully or failed to meet the initial call deadline, leaving them exposed to forfeiture risks if they do not act within the new window.

Kati Patang Lifestyle Limited approved the acquisition of a 51% stake in Chhota Hazri Spirits Private Limited during its board meeting on July 25, 2026, marking a strategic expansion into the alcoholic beverages sector. The company also reviewed its unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, which were recommended by the Audit Committee. This move aims to diversify Kati Patang’s portfolio by adding a target engaged in manufacturing, trading, export, and import of premium liquor, thereby strengthening its market position in the growing premium alco-bev segment.

The acquisition is structured as a combination of cash and share swap. It is contingent upon the completion of due diligence to the satisfaction of Kati Patang’s Board and the signing of a definitive Share Purchase Agreement (SPA). Upon successful completion, Chhota Hazri will become a subsidiary of Kati Patang. The transaction does not constitute a related-party transaction, and no promoter or promoter group holds an interest in the target entity. The cost and price of the shares are subject to valuation and due diligence, to be determined prior to or at the time of signing the SPA.

On the governance front, the Board approved the change in designation of Sanjay Kumar Jain from Non-Executive Independent Director to Non-Executive Non-Independent Director, effective July 25, 2026. This change is subject to shareholder approval. Mr. Jain, who is liable to retire by rotation, brings over 31 years of experience in investments, funds management, and corporate finance, holding SEBI accreditations as a Registered Investment Advisor and Registered Research Analyst.

The Board also authorized the issuance of a First Reminder Notice to holders of partly paid-up equity shares who have not yet paid the First & Final Call money of ₹10 per share. This relates to a rights issue of 1,02,56,651 shares allotted on August 4, 2025. While call money was received on 71,16,572 shares, payments remain outstanding for 31,40,079 shares. The company has waived interest charges if the amount is paid within the timeframe specified in the reminder notice. The Rights Issue Committee was empowered to finalize the terms and dispatch the notice via MAS Services Limited.

What the Numbers Show

The acquisition of Chhota Hazri Spirits aligns with Kati Patang Lifestyle Limited’s strategy to build India’s first lifestyle platform anchored in premium alco-bev. Despite the target’s modest turnover figures, the move supports diversification and market presence strengthening. The fluctuation in Chhota Hazri’s turnover—from ₹2.19 lakh in FY24 to ₹51.88 lakh in FY25, followed by a drop to ₹15.23 lakh in FY26—suggests variability in early-stage operations. Kati Patang aims to stabilize and scale these operations through its established distribution networks and brand equity. The cash-and-share-swap structure indicates a balanced approach to capital efficiency while securing control over a strategic asset in the growing premium spirits segment.