Vels Film International has extended the timeline for its proposed acquisition of KL Software Technologies Private Limited. The company now expects the transaction to be completed on or before August 31, 2026, following an additional period of two months. The acquisition involves the purchase of 6,000 equity shares of ₹10 each.

The Board of Directors had previously reviewed the proposal during its meeting held on May 30, 2026. The extension was communicated to the National Stock Exchange of India Limited (NSE) on June 29, 2026, in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Key Details of the Acquisition

The following table outlines the primary details of the proposed transaction:

All other disclosures and details provided in the earlier communication dated May 30, 2026, specifically in "Annexure B", remain unchanged. The company stated that the extension is necessary to finalize the remaining procedural formalities associated with the acquisition.

Vels Film International has approved the audited standalone and consolidated financial results for the half year and financial year ended March 31, 2026. The Board of Directors, meeting on May 30, 2026, also sanctioned the acquisition of a 60% stake in KL Software Technologies Private Limited for ₹60,000. This strategic move aims to expand the company's capabilities in computer graphics technology and other technology-driven solutions for film production and allied media businesses.

The Statutory Auditors, M/s. S R B R and Associates LLP, issued an unmodified opinion on the financial results. The results were reviewed by the Audit Committee prior to Board approval. In a parallel development, the Board approved the purchase of 6,000 equity shares of ₹10 each in KL Software Technologies Private Limited. Consequently, the target entity will become a subsidiary of Vels Film International.

The acquisition is classified as a related party transaction. Dr. Ishari K Ganesh, Managing Director and Promoter of Vels Film International, serves as a Director in the target entity. The transaction was conducted at arm's length, with shares acquired at their face value of ₹10 each. The consideration of ₹60,000 will be paid in cash.

KL Software Technologies Private Limited is engaged in providing end-to-end Microsoft technology-based solutions, including hardware, software, and customized services. Its operations encompass virtualization, private cloud solutions, and unified communication services. The entity reported a turnover of NIL and a net loss of ₹1,16,660 for the financial year ended March 31, 2025.

The acquisition is expected to be completed within one month from the date of Board approval. No governmental or regulatory approvals are required for the transaction. The target entity, incorporated on April 11, 2011, has a presence in India and reported a turnover of ₹15,39,540 in the financial year ended March 31, 2023.

Financial Parameters of KL Software Technologies Private Limited