Mr. Amay Vatsalya has announced an open offer to acquire up to 29,49,500 equity shares, representing 26% of CMX Holdings Limited (formerly SIEL Financial Services Limited), at ₹9.70 per share. This move follows a share purchase agreement to acquire a controlling stake in the company.

Key Details of the Open Offer

• Offer Price: ₹9.70 per equity share
• Number of Shares: Up to 29,49,500 equity shares (26% stake)
• Total Consideration: ₹2,86,10,150.00
• Tendering Period: September 30, 2025 to October 14, 2025

Background of the Transaction

The open offer has been triggered by a share purchase agreement between Mr. Vatsalya and the current promoter, Mrs. Aveen Kaur Sood. Under this agreement, Mr. Vatsalya will acquire 58,70,902 shares (51.75% stake) from Mrs. Sood at ₹7.00 per share.

About the Acquirer

Mr. Amay Vatsalya, 27, holds a Bachelor of Business Administration degree from Amity University, Uttar Pradesh. He has about 5 years of experience in operation management, export logistics, and sales & marketing.

Impact on CMX Holdings

Currently, CMX Holdings is not carrying out active business operations but has income from financial services. The change in control may lead to potential changes in the company's operations and management.

Regulatory Compliance

The open offer is mandatory under SEBI regulations and is unconditional with no minimum acceptance level. The acquirer has deposited ₹1,15,00,000.00 in an escrow account to demonstrate the ability to fulfill the offer obligations.

Implications for Shareholders

Eligible shareholders of CMX Holdings have the opportunity to tender their shares at ₹9.70 per share during the offer period. This represents a premium over the price at which the controlling stake is being acquired from the promoter.

Future Outlook

While specific plans have not been disclosed, the acquisition may lead to changes in CMX Holdings' business strategy and operations. Shareholders and market observers will be watching closely for any announcements regarding the company's future direction under new management.

The open offer provides an exit opportunity for existing shareholders at a fixed price, while potentially marking the beginning of a new chapter for CMX Holdings under Mr. Vatsalya's leadership.

Siel Financial Services (now known as CMX Holdings Limited) has reported a net loss of ₹750.72 thousand for the quarter ended June 30, according to the company's latest financial results. This loss represents a significant increase compared to the ₹25.94 thousand loss reported in the same quarter of the previous year.

Financial Performance

The company's financial results for Q1 reveal several key points:

• Total income stood at ₹450.00 thousand, entirely from other income sources.
• No revenue was generated from operations during the quarter.
• Total expenses increased to ₹1,200.72 thousand, primarily due to:
  • Employee benefits expense of ₹666.74 thousand
  • Other expenses of ₹476.21 thousand
  • Finance cost of ₹57.77 thousand

Accumulated Losses and Going Concern

CMX Holdings continues to face significant financial challenges:

• Accumulated losses have reached ₹1,70,813.94 thousand as of June 30.
• The company's net worth has been completely eroded by these losses.
• Negative operating cash flows in recent years have contributed to working capital constraints.

Despite these challenges, the company's management has prepared the accounts on a "going concern" basis, expressing hope that adequate finances and opportunities will become available in the foreseeable future to enable profitable operations.

Regulatory and Operational Constraints

The company faces several operational limitations:

• CMX Holdings is not allowed to carry out Non-Banking Financial Business due to the rejection of its application by the Reserve Bank of India.
• Operations are currently restricted to income from services, realization of debtors, and advances.
• The company has severely curtailed its operations due to a lack of funds and adverse market conditions.

Corporate Actions and Governance

Recent developments in the company include:

• An acquirer has entered into a Share Purchase Agreement to acquire 51.75% of the company's voting share capital at ₹7.00 per share.
• An open offer is in progress for an additional 26% of the equity share capital at ₹9.70 per share.
• The board has reappointed M/s Ajay & Ajay Co. as Internal Auditor.

Auditor's Review

S.K. MEHTA & CO., Chartered Accountants, conducted a limited review of the financial results and highlighted several concerns:

• The auditors noted the company's inability to carry out Non-Banking Financial Business.
• They pointed out the lack of confirmation and reconciliation for certain financial items.
• The auditors emphasized the material uncertainty regarding the company's ability to continue as a going concern.

As CMX Holdings navigates through these financial difficulties, the outcome of the ongoing share acquisition and open offer may have significant implications for the company's future direction and control.