Padam Cotton Yarns Board Approves Promoter Reclassification to Public Category

Padam Cotton Yarns Limited has achieved a significant milestone in its corporate governance restructuring as the Board of Directors approved the reclassification requests from eight promoters on March 27, 2026. The board meeting, held from 6:30 P.M. to 6:45 P.M., formally approved the transition of these promoters from the promoter category to public category under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Board Meeting Outcomes

The Board of Directors considered and approved the reclassification requests under Regulation 30 & 31A of SEBI regulations. The approval is subject to necessary approvals from BSE Limited and other regulatory authorities as required under SEBI regulations. The company has confirmed it will submit a reclassification application along with supporting documents to BSE as required under the prescribed procedure.

Meeting Details:	Information
Date:	March 27, 2026
Duration:	6:30 P.M. to 6:45 P.M.
Company Code:	531395 PADAMCO
Authorized Signatory:	Dinesh Shreevastav, Whole-Time Director

Promoters Seeking Reclassification

The following eight promoters have received board approval for reclassification, all currently holding zero equity shares in the company:

S. No.:	Name of Promoter/Promoter Group	No. of Shares Held	Percentage of Total Equity
1:	Padam Sain Gupta	0	0
2:	Prem Lata	0	0
3:	Radhika Gupta	0	0
4:	Vivek Gupta	0	0
5:	Vivek Gupta HUF	0	0
6:	Rajev Gupta	0	0
7:	Rajev Gupta HUF	0	0
8:	Rekha Gupta	0	0
Total:		0	0

Regulatory Compliance and Documentation

All requesting promoters have provided comprehensive undertakings confirming they do not hold more than ten percent of total voting rights, do not exercise control over company affairs directly or indirectly, and have no special rights through formal or informal arrangements. They are not represented on the board of directors, do not act as key managerial persons, are not wilful defaulters as per RBI guidelines, and are not fugitive economic offenders.

The promoters have committed to comply with specific SEBI conditions for three years post-reclassification and have undertaken to abide by all conditions listed in Regulation 31A of the SEBI LODR Regulations, 2015. The board has provided a certified true copy of the Board Resolution for the meeting held on March 27, 2026, as part of the formal documentation process.

Next Steps and Regulatory Process

The company will now submit a reclassification application along with supporting documents to BSE Limited as required under Regulation 31A. The board has confirmed that the company is compliant with minimum public shareholding requirements, trading in shares has not been suspended, and there are no outstanding dues to SEBI, stock exchanges, or depositories.

This development represents a significant corporate governance milestone as the company transitions its promoter structure in compliance with regulatory frameworks, moving from initial request submission to formal board approval and documentation under both Regulation 30 & 31A of SEBI regulations.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.64%	-17.41%	-23.24%	-26.00%	-26.00%	-26.00%

Rathod Manoj Chhaganlal HUF has filed a disclosure with BSE Limited regarding a substantial reduction in its shareholding in padam cotton yarns Limited. The transaction falls under SEBI's Substantial Acquisition of Shares and Takeovers Regulations, 2011, specifically Regulation 29(2).

Transaction Details

The HUF entity, which is not part of the promoter group, executed an open market sale of equity shares on 27/03/2026. The disclosure reveals a strategic reduction in the entity's position in the textile company.

Parameter	Before Transaction	Transaction	After Transaction
Shares Held	5184567	Sale of 1792127	3392440
Shareholding %	2.36%	0.82% reduction	1.54%
Voting Rights %	2.36%	0.82% reduction	1.54%

Shareholding Structure

The transaction involved only direct equity shareholding, with no complications from encumbrances, warrants, or convertible securities. Key aspects of the holding structure include:

No shares held under encumbrance (pledge, lien, or non-disposal undertaking)
No voting rights held otherwise than through direct shareholding
No warrants or convertible securities in the portfolio
Clean divestment through open market mechanism

Company Capital Structure

Padam Cotton Yarns Limited's equity capital structure remained stable throughout the transaction period. The company maintains its listing on Bombay Stock Exchange Limited with consistent capitalization metrics.

Metric	Value
Total Equity Share Capital	219470000 shares
Total Voting Capital	219470000 shares
Diluted Share Capital	219470000 shares

Regulatory Compliance

The disclosure was filed in accordance with SEBI regulations, with Manoj Rathod acting as Karta of the HUF submitting the required documentation to both BSE Limited and the company's board of directors. The filing ensures transparency in substantial shareholding changes and maintains regulatory compliance for all stakeholders.

The transaction represents a clean exit strategy execution, reducing the HUF's exposure while maintaining a meaningful stake in the textile manufacturer. The open market sale mechanism ensured price discovery through regular trading channels without impacting the company's operational structure.