Chembond Material Technologies Limited , a key player in the specialty chemicals sector, witnessed a significant change in its promoter shareholding. Nirmal V. Shah, a promoter of the company, received a substantial gift of equity shares from immediate family members, strengthening his position within the organization.

Transaction Details

The off-market transaction involved the transfer of 124,700 equity shares to Nirmal V. Shah from three family members:

This gift transaction, conducted without any monetary consideration, has resulted in a notable increase in Nirmal V. Shah's shareholding in Chembond Material Technologies Limited.

Impact on Shareholding

Following the share transfer, Nirmal V. Shah's stake in the company has seen a significant boost:

• Before Transaction: 1,795,190 shares (13.35% of total voting capital)
• After Transaction: 1,919,890 shares (14.28% of total voting capital)

The increase of 0.93 percentage points in Shah's ownership underscores the family's continued commitment to the company.

Company Overview

Chembond Material Technologies Limited, formerly known as Chembond Chemicals Limited, maintains its equity share capital at Rs. 67,241,440, comprising 13,448,288 shares of Rs. 5 each.

Regulatory Compliance

In adherence to regulatory requirements, the company has duly filed the necessary disclosures under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This transparency ensures that all stakeholders are informed about significant changes in promoter shareholding.

The gift transaction and subsequent increase in Nirmal V. Shah's stake may be viewed as a positive signal by the market, potentially indicating the promoter group's confidence in the company's future prospects. However, investors are advised to conduct their own analysis and consider multiple factors when making investment decisions.

Chembond Material Technologies Limited (CMTL) has taken a significant step towards expanding its manufacturing capabilities. The company has been allotted 10.02 acres of land by the Karnataka Industrial Areas Development Board (KIADB) in the Kanagala Industrial Area, Belagavi District, on a lease-cum-sale basis.

Expansion Details

The land acquisition is aimed at establishing a new manufacturing unit that will focus on producing a diverse range of products including:

• Metal treatment chemicals
• Automotive sealants
• Engineering adhesives
• Industrial and high-performance coatings
• Paint booth solutions
• Maintenance repair overhaul (MRO) products
• Biosciences

Financial Implications

The tentative cost of the plot is Rs. 7.94 crore, as disclosed by the company in its regulatory filing. This investment underscores CMTL's commitment to growth and its confidence in the market demand for its specialized chemical products.

Timeline and Process

The allotment letter for the land was dated July 21, and was received by Chembond Material Technologies on July 25. The company promptly informed the stock exchanges about this development on July 26, in compliance with SEBI regulations.

Company Performance

In related news, CMTL recently announced its financial results for the quarter ended June 30. The company reported:

• Consolidated revenue from operations of Rs. 5,767.50 lakhs
• Profit before tax of Rs. 536.53 lakhs
• Net profit of Rs. 399.02 lakhs

Segment-wise Performance

CMTL operates in two main segments:

1. Specialty Chemicals: Generated revenue of Rs. 4,805.99 lakhs with a segment profit of Rs. 189.29 lakhs.
2. Biosciences (Animal Health): Contributed Rs. 961.51 lakhs to revenue with a segment profit of Rs. 82.09 lakhs.

Future Outlook

The land acquisition in Karnataka is expected to bolster CMTL's production capabilities and potentially contribute to increased revenues in the coming years. As the company moves forward with its expansion plans, investors and industry observers will be keenly watching how this new facility impacts CMTL's market position and financial performance in the specialty chemicals sector.

Chembond Material Technologies Limited continues to demonstrate its commitment to growth and innovation in the chemical industry, with this strategic land acquisition marking a significant milestone in its expansion journey.