National General Industries Limited (NGIL) is set to witness a significant change in its promoter group shareholding structure. Pawan Kumar Modi, a member of the company's promoter group, is poised to acquire a 6.32% stake in the company through an inter-se transfer from family members.

Transaction Details

The proposed acquisition involves the transfer of 349,786 equity shares, representing 6.32% of NGIL's total equity. The shares will be transferred as a gift from two immediate family members:

1. Sangeeta Modi (wife of Pawan Kumar Modi's brother): 270,976 shares
2. Shakuntala Modi (Pawan Kumar Modi's mother): 78,810 shares

Shareholding Impact

This transaction will significantly boost Pawan Kumar Modi's stake in the company:

Regulatory Compliance

The proposed transfer is exempt from open offer requirements under the Securities and Exchange Board of India (SEBI) Substantial Acquisition of Shares and Takeovers Regulations, 2011. This exemption falls under Regulation 10(1)(a)(i), which allows inter-se transfers between qualifying persons who are immediate relatives.

Transaction Timeline

The share transfer is scheduled to take place on or after September 9, 2025. As this is a gift transaction, there will be no monetary consideration involved.

Disclosure and Transparency

In compliance with regulatory requirements, Pawan Kumar Modi has submitted the necessary intimation to the BSE Limited on September 2, 2025. This disclosure includes details of the proposed acquisition, the rationale behind the transfer, and declarations regarding compliance with applicable regulations.

Promoter Group Shareholding

As of March 31, 2025, the promoter and promoter group of National General Industries Limited, including persons acting in concert, held 3,628,902 equity shares. The company has consistently reported no encumbrances on these shares over the past three financial years.

This inter-se transfer within the promoter group reflects a reorganization of family holdings while maintaining the overall promoter stake in National General Industries Limited. The transaction underscores the continued commitment of the Modi family to the company's ownership structure.

National General Industries Limited (NGIL) has reported a significant downturn in its financial performance for the first quarter. The company posted a net loss of ₹25.23 crores, marking a stark contrast to the profit of ₹31.26 crores in the previous quarter and ₹16.96 crores in the same quarter last year.

Revenue Decline

The company's revenue saw a substantial decrease, falling by 37.5% quarter-on-quarter and 37.4% year-on-year to ₹196.86 crores. This decline was primarily driven by the poor performance of its core steel segment.

Segment-wise Performance

Steel Segment

The steel segment, which forms the backbone of NGIL's operations, reported a loss of ₹26.64 crores, a significant reversal from the profit of ₹9.51 crores in the previous quarter. The segment's revenue plummeted to ₹161.74 crores from ₹276.08 crores in the preceding quarter.

Other Segment

The company's other segment, primarily consisting of investment activities, also turned to a marginal loss of ₹0.79 crores, compared to a profit of ₹32.60 crores in the previous quarter.

Financial Highlights

*All figures in ₹ crores, except EPS

Cost Management

Despite the revenue decline, NGIL managed to reduce its total expenses to ₹224.11 crores. The cost of materials consumed dropped to ₹98.67 crores from ₹166.68 crores in the previous quarter, reflecting lower production levels.

Management Commentary

The financial results were approved by the Board of Directors on August 11, following a review by the Audit Committee.

Outlook

While the company faces challenges, particularly in its core steel segment, the management's efforts to control costs are evident. Investors and stakeholders will be keenly watching NGIL's performance in the coming quarters for signs of recovery in the steel market and improvement in the company's financial health.

National General Industries Limited continues to operate in a challenging environment, with its performance closely tied to the dynamics of the steel industry. The company's ability to navigate these headwinds and return to profitability will be crucial in the near term.