Desh Rakshak Aushdhalaya Limited , a manufacturer of Ayurvedic and herbal products, has received a significant boost in its capital structure. The company recently obtained listing approval from BSE Limited for 12,60,000 equity shares issued on a preferential basis to non-promoters.

Key Details of the Preferential Issue

Next Steps and Compliance

The company is now required to take the following actions:

1. Apply for trading approval within seven working days from the date of listing approval.
2. Submit necessary documents to BSE, including:
   • Confirmation letters from NSDL/CDSL about crediting shares to beneficiary accounts
   • Confirmation of lock-in for pre-preferential holding (if applicable)

Regulatory Framework

This preferential issue is governed by:

• SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018
• SEBI Master Circular no. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024
• SEBI Circular no. SEBI/HO/CFD/CFD-PoD-1/P/CIR/2023/123 dated July 13, 2023

Impact on the Company

The successful listing approval marks a significant milestone for Desh Rakshak Aushdhalaya Limited. This preferential issue is expected to strengthen the company's capital base, potentially providing additional resources for business expansion or other corporate purposes.

Market Implications

Investors and market participants should note that:

• The new shares will be subject to regulatory lock-in periods as per SEBI guidelines.
• The company's shareholding pattern may see changes, with potential implications for stock liquidity and market dynamics.

As Desh Rakshak Aushdhalaya Limited progresses through the final stages of this preferential issue, market observers will be keen to see how the company utilizes this capital infusion to drive growth in the Ayurvedic and herbal products sector.

Desh Rakshak Aushdhalaya Limited , a manufacturer of Ayurvedic and herbal products, has announced a significant change in its shareholding structure following a preferential allotment of equity shares. The company, listed on the Bombay Stock Exchange, saw its promoter group shareholding decrease from 64.28% to 50.07% as a result of the new share issuance.

Preferential Allotment Details

The preferential allotment increased the company's equity share capital from Rs. 4,43,83,240 to Rs. 5,69,83,240. This represents an increase in the total number of equity shares from 44,38,324 to 56,98,324, with each share having a face value of Rs. 10.

New Investors

The newly issued shares were allotted to non-promoter public category investors. Two significant investors emerged from this allotment:

1. Mr. Navneet Chaturvedi acquired 5,50,000 shares, representing 9.65% of the company's post-issue share capital.
2. Mrs. Ruchika Chaturvedi also acquired 5,50,000 shares, accounting for another 9.65% stake.

Together, Mr. Navneet Chaturvedi and Mrs. Ruchika Chaturvedi now hold a combined 19.30% stake in Desh Rakshak Aushdhalaya Limited.

Impact on Promoter Shareholding

While the promoter group's percentage shareholding has decreased, their absolute number of shares remains unchanged at 28,53,100. The dilution in their stake is a result of the increase in the total number of outstanding shares.

The company's promoter group includes:

• Mrs. Monika Jain
• Mrs. Sudesh Jain
• Mr. Tosh Kumar Jain
• Mr. Arihant Kumar Jain

It's worth noting that Mr. Manoj Kumar Jain and Mrs. Payal Jain, while listed as part of the promoter group, are reported as not being alive.

Regulatory Compliance

Desh Rakshak Aushdhalaya Limited has made the necessary disclosures under Regulation 29(2) of the Securities and Exchange Board of India (SEBI) (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company's management, led by Managing Director Mr. Tosh Kumar Jain, has ensured compliance with all relevant regulatory requirements related to this preferential allotment.

Company Background

Established in 1901, Desh Rakshak Aushdhalaya Limited (CIN: L33119UR1981PLC006092) is based in Haridwar, Uttarakhand. The company specializes in the manufacture of Ayurvedic and herbal products, contributing to India's traditional medicine sector.

This preferential allotment marks a significant change in the company's ownership structure, potentially bringing new perspectives and resources to support its future growth and development in the Ayurvedic and herbal products market.