Nandini Modi and Kirit Modi have filed the Detailed Public Statement (DPS) with BSE Limited regarding their mandatory open offer to acquire up to 26% of the voting share capital in South India Paper Mills . The filing, dated August 25, 2026, confirms the offer price of ₹120 per share and validates the acquirers' financial capacity to execute the transaction.

The open offer is triggered by a Share Purchase Agreement (SPA) dated August 18, 2026, under which the acquirers agreed to purchase 37,90,240 equity shares (20.21% stake) from Harshad Natvarlal Modi and Rajul Harshad Modi for ₹45.48 crore. The subsequent open offer allows the acquisition of up to 48,75,000 additional shares from public shareholders at the same price, representing a maximum potential consideration of ₹58.5 crore.

Financial Resources and Net Worth

The DPS discloses the net worth and liquid assets of the primary acquirers as certified by CA Sameer Kothari on August 18, 2026. These figures demonstrate the group's ability to fund the open offer obligations.

Nandini Modi holds a Bachelor of Science degree and has over 30 years of experience in the paper and packaging industry. Kirit Modi holds a Post Graduate Diploma in Management from IIM Calcutta and has over 41 years of industry experience.

Promoter Classification and PACs

Upon completion of the SPA and the open offer, Nandini Modi and Kirit Modi will be classified as "Promoters" of the target company. Their Persons Acting in Concert (PACs), including Sachin Kirit Modi, Swapnil Kirit Modi, Riddhi Sachin Modi, Bhuvi Swapnil Modi, Rihaan Sachin Modi, Rigid Containers Private Limited, and Fortune Packaging LLP, will also be part of the promoter group.

The acquirers currently hold a combined stake of 19.17%. Following the underlying SPA transaction, their aggregate holding will rise to 39.39%, excluding any shares acquired through the open offer. The selling shareholders, Harshad Natvarlal Modi and Rajul Harshad Modi, will exit completely, ceasing to hold any equity shares in the company.

Regulatory Compliance

Indcap Advisors Private Limited serves as the Manager to the Open Offer. The tendering period will span 10 working days, with specific dates to be disclosed in the Letter of Offer. The acquirers have undertaken to ensure that the target company maintains the minimum public shareholding required under the Securities Contracts (Regulation) Rules, 1957, and SEBI LODR Regulations, 2015. There is no intention to delist the company's equity shares.

South India Paper Mills reported a net profit of ₹497.79 lakh for the quarter ended June 30, 2026, marking a substantial recovery from the ₹98.16 lakh profit recorded in the corresponding quarter of the previous year. The surge in profitability was driven by a 10% increase in revenue from operations to ₹11,758.39 lakh, while total expenses grew by only 5.1%. This operational leverage suggests improved cost control or favorable input price dynamics relative to selling prices. The results were approved by the Board of Directors at a meeting held on July 30, 2026.

The company’s total income stood at ₹11,775.83 lakh, with operational revenue accounting for the vast majority of inflows. Other income contributed a marginal ₹17.44 lakh. On the expense side, total costs amounted to ₹11,110.49 lakh. Cost of materials consumed was ₹6,500.81 lakh, while employee benefit expenses totaled ₹915.13 lakh. Finance costs decreased to ₹457.80 lakh from ₹510.12 lakh in the prior year period, indicating improved interest burden management.

Financial Performance Highlights

The profit before tax surged to ₹665.34 lakh from ₹131.21 lakh in the previous year. Tax expenses included a deferred tax credit of ₹167.55 lakh, contributing to the bottom-line improvement. Earnings per share (basic and diluted) rose to ₹2.65 from ₹0.52 in the corresponding quarter of FY26.

What the Numbers Show

The primary driver of the profit surge is the divergence between revenue growth and expense growth. While revenue increased by approximately 10% year-on-year, total expenses grew by only 5.1%. This operational leverage suggests better cost control or favorable input price dynamics relative to selling prices. Specifically, finance costs declined despite stable revenue levels, reducing the drag on profitability. The company operates in a single segment, Paper and Paper Products, meaning these results reflect consolidated performance without diversification offsets.

Regulatory Disclosures

The results have been subjected to a limited review by B S Ravikumar & Associates, Chartered Accountants, Mysore, pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Audit Committee reviewed the accounts before Board approval. The company noted that its existing employee emolument structure is broadly in line with the New Labour Codes notified by the Government of India on November 21, 2025, and no material impact is currently envisaged. There were no pending investor complaints at the beginning or end of the quarter, with three complaints received and resolved during the period.