Steelman Telecom Limited approved the sale of 75,000 equity shares in its subsidiary, EC Wheels India Private Limited, to three employees for a total consideration of ₹7.50 lakh. The transaction, valued at ₹10 per share, reduces the company's stake in EC Wheels from 50.08% to approximately 49.47%, resulting in EC Wheels ceasing to be a subsidiary of Steelman Telecom.

The Board of Directors approved the transfer during a meeting held on September 25, 2026. The shares were distributed equally among three key personnel: Mohit Agarwal (Chief Financial Officer), Ujjwal Biswas (Project Finance Manager), and Susanta Chowdhury (Senior Manager). Each individual acquired 25,000 shares for ₹2.50 lakh. The transaction is expected to be completed prior to September 30, 2026.

Transaction details and valuation

The sale price of ₹10 per equity share was determined based on a valuation report issued by Registered Valuer Mayank Sharma. The transaction with Mohit Agarwal, who serves as a Key Managerial Personnel (KMP), was classified as a Related Party Transaction. This specific component received approval from the Audit Committee and was conducted on an arm's length basis within applicable materiality thresholds.

The transactions involving Biswas and Chowdhury do not constitute Related Party Transactions solely by virtue of their employment status. The Board noted that the entire proposal aligns with the company's Material Subsidiary Policy. As an SME-listed entity, Steelman Telecom is exempt from Regulation 24(5) of the SEBI LODR Regulations under the provisions of Regulation 15(2).

Financial impact on consolidated results

EC Wheels contributed significantly to Steelman Telecom's financials in the last financial year. The subsidiary accounted for ₹4,361.76 lakh in turnover, representing 18.94% of the listed entity's total turnover. However, EC Wheels reported negative net worth/net assets of ₹2,274.43 lakh, which constituted (79.41%) of the consolidated net worth contribution.

What the numbers show

The sale represents a marginal dilution of ownership rather than a strategic exit. By transferring just 0.61% of EC Wheels' equity capital, Steelman Telecom retains a near-majority position at 49.47%. This slight reduction in shareholding likely serves as an employee incentive mechanism, given that the recipients include the CFO and senior operational staff, while maintaining effective control or significant influence over the subsidiary. Notably, the cessation of subsidiary status removes an entity with negative net worth from the consolidated balance sheet, potentially improving the parent company's standalone net worth metrics.

Steelman Telecom Limited has scheduled a Board of Directors meeting for September 25, 2026. The session will consider strategic business transactions that may materially impact the company's securities price.

The intimation was filed with the Bombay Stock Exchange on September 22, 2026. Pursuant to Regulation 29 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company disclosed that the detailed terms of any approved transactions will be announced to stock exchanges in accordance with applicable laws.

Trading window closure

In compliance with the SEBI (Prohibition of Insider Trading) Regulations, 2015, and the company's internal code, the trading window is now closed. This restriction applies to all Designated Persons and their immediate relatives.

The closure period began on Tuesday, September 22, 2026. It will remain in effect until 48 hours after the information regarding the proposed transactions is made generally available to the public. Relevant persons are advised against trading in the company's securities during this period.

Key details of the announcement

The company stated that the intimation is also available on its website for public record. No specific financial figures or transaction values were disclosed in this initial notification.