Paul Merchants has received a comprehensive regulatory disclosure from Paul Excursions LLP under SEBI Regulation 10(6) regarding the acquisition of 3,07,065 equity shares representing 9.96% of the company's total voting capital. The disclosure was filed following the conversion of Paul Excursions Private Limited to Paul Excursions LLP.

SEBI Regulatory Framework

Paul Excursions LLP submitted the disclosure under Regulation 10(6) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, reporting the acquisition made under the exemption provided in Regulation 10(1)(g). The transaction involved succession on conversion from a private company to LLP structure.

Transaction Structure and Rationale

The share transfer occurred pursuant to succession on conversion of Paul Excursions Private Limited into Paul Excursions LLP. The transaction was completed at nil consideration as it represents a structural conversion rather than a commercial transfer. No prior disclosure under Regulation 10(5) was required as succession-based transfers under Regulation 10(1)(g) are excluded from prior-notification mandates.

Shareholding Pattern Analysis

The regulatory disclosure reveals detailed shareholding changes before and after the transaction. The total promoter group holding remains unchanged at 74.65%, with Paul Excursions LLP acquiring the entire stake previously held by Paul Excursions Private Limited.

Entity Information and Management

Paul Excursions LLP operates with LLPIN ACU-9230 and PAN ABIFP8814C, maintaining its registered office at Industrial Plot No. 161, Industrial Area, Phase-II, Chandigarh. The persons acting in concert include promoter group members who continue to hold their respective shareholdings unchanged.

Paul Merchants Limited has informed BSE about the downgrade and withdrawal of its credit ratings by Infomerics Valuation and Rating Limited on February 20, 2026. The company provided detailed reasons for the rating action following an earlier communication that lacked specific justification for the downgrade.

Rating Downgrade Details

Infomerics Valuation and Rating Limited downgraded Paul Merchants' credit rating before simultaneously withdrawing it with immediate effect. The rating agency provided comprehensive reasoning for the downgrade through a press release dated February 20, 2026.

Reasons for Rating Downgrade

The credit rating agency identified several key factors that led to the downgrade:

• Declining forex revenue affecting overall financial performance
• Thin profitability margins inherent to the company's trading nature of operations
• Market exposure risks specifically related to U.S. and Canadian markets

Despite these concerns, Infomerics acknowledged certain positive aspects that continued to support the rating before withdrawal.

Supporting Factors and Outlook

The rating agency recognized several strengths that provided partial support to the credit assessment:

Rating Withdrawal Process

The withdrawal of ratings occurred following a formal request from Paul Merchants Limited. The company obtained necessary clearances from its lenders to facilitate the withdrawal process.

Withdrawal Requirements Met:

• No objection certificate received from respective lenders
• No dues certificate obtained for sanctioned facilities
• Confirmation that proposed bank facilities would not be pursued

The rating withdrawal was conducted in accordance with Infomerics Ratings policy on withdrawal of ratings. Additionally, ratings assigned to proposed bank facilities were also withdrawn based on the company's confirmation that it would not proceed with raising the envisaged loans.

Regulatory Compliance

Paul Merchants Limited filed this intimation under Regulation 30 of SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015. The communication was signed by Company Secretary and Compliance Officer Hardam Singh (FCS 5046) and submitted to BSE Limited with reference number PML/CS/BSE/2026/254.

This disclosure follows the company's earlier letter PML/CS/BSE/2026/253 dated February 20, 2026, which initially informed about the rating withdrawal but lacked specific reasons for the downgrade.