Neo Infracon Limited disclosed that its promoter, Darshik D. Mehta, acquired an additional stake in the company through an open market transaction. The purchase of 2,297 equity shares took place on August 19, 2026, increasing Mehta's total holding to 4,14,241 shares.

The acquisition accounts for 0.04% of the company's total voting capital. Prior to this transaction, Mehta held 4,11,944 shares, representing 7.76% of the equity share capital. Post-acquisition, his stake rose to 7.81%.

Transaction Details

The disclosure was made in compliance with Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The document was submitted to the Bombay Stock Exchange (BSE) on August 20, 2026.

There were no encumbrances, pledges, or liens associated with the shares held by the acquirer before or after the transaction. The total equity share capital of Neo Infracon Limited remained unchanged at 53,06,800 equity shares following the acquisition.

Neo Infracon Limited has lost its statutory auditor, M/s. D. Kothary & Co., following a failure to agree on audit remuneration. The resignation, effective August 6, 2026, stems from the auditor’s assertion that the professional effort and resources required for auditing a listed entity have increased significantly, necessitating a fee revision that management did not accept. This departure creates an immediate need for the company to appoint a new statutory auditor in accordance with the Companies Act, 2013, and SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

The resignation was communicated to the BSE Limited under Regulation 30 of the SEBI LODR Regulations, 2015. In its intimation, Neo Infracon stated that it has taken note of the resignation and will initiate the process to appoint a replacement. The filing confirms that no other material reasons exist for the resignation beyond the fee dispute, and the auditor did not report any management-imposed limitations on audit evidence or concerns regarding the quality of information provided.

Auditor’s Statement and Compliance

M/s. D. Kothary & Co., Chartered Accountants (Firm Registration Number 105335W), submitted its resignation letter dated August 6, 2026, to the Board of Directors. Partner Mukesh Udaykant Jha signed the letter, stating that discussions with management regarding a revision of audit remuneration failed to yield a mutually acceptable structure. To maintain professional independence and objectivity, the firm deemed it appropriate to step down.

Crucially, the auditor confirmed that it had already issued its Limited Review Report for the quarter ended June 30, 2026, in compliance with paragraph 6.1 of section V-D of Chapter V of the SEBI Master Circular dated July 11, 2023. This ensures that the company’s financial disclosures for Q4FY26 remain valid despite the auditor’s exit.

Key Details of the Resignation

The following table outlines the key details of the auditor’s tenure and resignation as disclosed in the regulatory filing:

D. Kothary & Co. was appointed as statutory auditor under Section 139 of the Companies Act, 2013. The firm’s address is listed as 102, Ameya House, Next to Azad Nagar Metro Station, Andheri West, Mumbai - 400053. The resignation letter explicitly states that there were no issues related to insufficient appropriate audit evidence or lack of information that would significantly impact the financial statements.

What the Numbers Show

The resignation highlights a common friction point in corporate governance: the alignment of audit fees with the increasing complexity and resource demands of statutory audits for listed entities. While D. Kothary & Co. cited rising professional efforts and time commitments as drivers for the requested fee revision, Neo Infracon’s management declined to adjust the remuneration to the auditor’s expectations.

Notably, the auditor completed its limited review for the most recent quarter (ended June 30, 2026) before formalizing the resignation. This suggests that the fee dispute was likely ongoing during the audit process but did not hinder the completion of immediate regulatory filings. However, the abrupt change in mid-term—less than a year after appointment on July 14, 2025—may signal potential challenges in maintaining continuity in audit oversight for FY2026-27. Investors should monitor the timeline for the appointment of the new statutory auditor, as delays could impact future quarterly reviews or annual audit timelines.