Shardul Securities Limited has submitted an application to the Bombay Stock Exchange (BSE) to reclassify five entities from the 'Promoter and Promoter Group' category to the 'Public' category. The filing, dated August 17, 2026, follows the Board of Directors' approval of the reclassification request during its meeting on August 12, 2026. This procedural step advances the structural shift in ownership disclosure initiated by a family settlement within the Chaturvedi family.

The reclassification concerns Gagan Dinanath Chaturvedi, Shruti Gagan Chaturvedi, Mohini G Chaturvedi, Pradeep Sandeep Corporate Advisors LLP, and Kamvan Construction Private Limited. These entities previously held stakes in the company but sold their entire holdings to Shriyam Commodities Intermediary LLP as part of a memorandum of family settlement executed on July 16, 2026. The applicants confirmed they currently hold nil shareholding and exercise no control over the company's affairs.

The process is governed by Regulation 30 and Regulation 31A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The applicants have provided undertakings under Regulation 31A(3)(b), confirming they do not hold more than 10% of total voting rights, are not represented on the board, and do not act as key managerial personnel. They also certified that they are not wilful defaulters per Reserve Bank of India guidelines nor fugitive economic offenders.

Regulatory Compliance and Conditions

Upon reclassification, the applicants must maintain these conditions indefinitely. Restrictions on board representation and acting as key managerial personnel will apply for three years. The applicants emphasized that they were never involved in the day-to-day management or business operations of Shardul Securities Limited and have no right to appoint directors. The company stated it will keep the stock exchange informed regarding the status of the reclassification application in accordance with Listing Regulations.

What the Numbers Show

The complete divestment by the applicant group underscores a clean separation from the promoter circle, reducing potential related-party complexities. With zero shareholding retained, the financial and operational linkage between this subset of the Chaturvedi family and Shardul Securities Limited is formally severed, simplifying the corporate governance structure as per regulatory requirements.

Shardul Securities has approved a proposal to buy back up to 1,92,00,000 fully paid-up equity shares of face value ₹2 each at a price of ₹60 per share. The total consideration for the buyback will not exceed ₹115.20 crore, excluding transaction costs such as brokerage, taxes, and advisory fees.

The buyback represents 24.92% of the company’s aggregate paid-up equity share capital and free reserves based on standalone audited financial statements as of March 31, 2026, and 14.16% based on consolidated figures. This is within the statutory limit of 25% under the Companies Act, 2013, and SEBI (Buy-back of Securities) Regulations, 2018. The transaction will be executed through the tender offer route on a proportionate basis.

Key Terms and Process

The buyback is subject to approval by shareholders via a special resolution at the ensuing Annual General Meeting (AGM) through e-voting. The Board or Buy Back Committee may increase the buyback price and decrease the number of shares proposed, without changing the total buyback size, one working day prior to the record date, in accordance with Regulation 5(via) of the SEBI Buy Back Regulations.

As mandated by regulations, 15% of the number of equity shares proposed for buyback, or the number of shares held by small shareholders as on the record date (whichever is higher), will be reserved for small shareholders. The record date will be determined subsequently by the Board or Buy Back Committee.

Promoter Participation and Shareholding Changes

The Board noted the intention of the promoters and members of the promoter group to participate in the proposed buyback. Additionally, the board approved the reclassification of certain entities from the ‘Promoter and Promoter Group’ category to the ‘Public’ category. The request was made by Gagan Dinanath Chaturvedi, Shruti Gagan Chaturvedi, Mohini G Chaturvedi, Pradeep Sandeep Corporate Advisors LLP, and Kamvan Construction Private Limited. The company will seek no-objection from BSE Limited for this reclassification in due course.

Pre-Buyback Shareholding Pattern

The pre-buyback shareholding pattern as of August 7, 2026, shows that promoters and the promoter group hold 74.85% of the equity share capital. Foreign Institutional Investors/Foreign Portfolio Investors hold 0.30%, while the Indian public, corporates, and others hold 24.82%.

What the Numbers Show

The buyback size of ₹115.20 crore is significant relative to the company’s capital structure, representing nearly a quarter of its standalone paid-up capital and free reserves. With promoters holding over 74% of the stake and indicating intent to participate, the buyback may serve to optimize the capital structure and return surplus cash to controlling shareholders while reducing the free float. The simultaneous reclassification of certain promoter group members to the public category could further alter the regulatory perception of the company’s public holding percentage post-transaction.

The Board meeting concluded at 9:15 pm on August 12, 2026. Further details regarding the process, timelines, and record date will be communicated in the public announcement and letter of offer in accordance with SEBI regulations.