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.

Kati Patang Lifestyle Limited disclosed its shareholding pattern for the quarter ended June 30, 2026, reporting that public shareholders held 64.05% of the total equity shares, while promoters held 35.95%. The filing was submitted to the stock exchanges under Regulation 31 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The total number of equity shares stood at 53,326,024. Promoters held 19,170,999 shares, comprising 19,150,999 fully paid-up shares and 20,000 partly paid-up shares. Public shareholders held 34,155,025 shares, consisting of 31,034,946 fully paid-up shares and 3,120,079 partly paid-up shares.

Shareholding Breakdown

The following table summarizes the shareholding distribution as of June 30, 2026:

Promoter Details

Within the promoter group, Indian individuals and Hindu undivided families held 15,713,010 shares, representing 29.47% of the total share capital. Bodies Corporate within the promoter group held 3,457,989 shares, accounting for 6.48%. The filing confirmed that no shares held by promoters were encumbered under pledge or non-disposal undertakings.

Public Shareholding Composition

Public shareholding included resident individuals holding shares with a nominal value up to ₹2 lakhs, who accounted for 4.87% of the total capital. Resident individuals holding shares exceeding ₹2 lakhs held 44.25% of the company. Non-Resident Indians (NRIs) held 2.95%, while Bodies Corporate held 11.54% of the total shares.