Oswal Greentech Limited has significantly increased its stake in Oswal Agro Mills Limited (OAML) through a strategic open market transaction. The company acquired a 4.99% stake, equivalent to 66.99 lakh shares, for ₹50.91 crore, bolstering its position and the overall promoter holding in OAML.

Transaction Details

The acquisition, disclosed in a regulatory filing, involves the purchase of approximately 66,99,000 equity shares of Oswal Agro Mills, each with a nominal value of ₹10. This move increases Oswal Greentech's stake in OAML to about 9.98%, as the company already held 66,83,109 equity shares prior to this transaction.

Strategic Implications

This acquisition is seen as a strategic move to reinforce the promoter group's commitment to Oswal Agro Mills and enhance market confidence. While there are no specific operational reasons cited for the acquisition, it is expected to strengthen the promoters' influence and provide greater strategic flexibility within the entity.

Oswal Agro Mills: Company Profile

Oswal Agro Mills Limited, incorporated on December 14, 1979, primarily engages in trading goods and real estate development. The company also lends its surplus funds as interest-bearing inter-corporate deposits. Key financial highlights of OAML include:

• Paid-up share capital: ₹134.23 crore
• Total Income: ₹173.68 crore
• Profit after tax: ₹108.82 crore

Financial Performance

OAML has shown significant fluctuations in its turnover over the past three years:

Promoter Group Shareholding

The promoter and promoter group's interest in Oswal Agro Mills extends beyond Oswal Greentech's stake. Notable shareholdings include:

• Mrs. Aruna Oswal: 5,60,26,460 shares (41.74%)
• Mr. Pankaj Oswal: 74,150 shares (0.06%)
• Mrs. Shallu Jindal: 1,57,500 shares (0.12%)

Regulatory Compliance

Oswal Greentech has assured full compliance with regulatory disclosure requirements related to this change in shareholding. The transaction was conducted at arm's length, adhering to market practices and regulations.

This strategic move by Oswal Greentech underscores the promoter group's confidence in Oswal Agro Mills' future prospects and their commitment to playing a more significant role in the company's direction and growth.

Oswal Greentech , a prominent player in the real estate and investment sector, announced a significant change in its auditing structure alongside the release of its first-quarter financial results.

Auditor Resignation

The company disclosed that M/s Oswal Sunil & Company, its statutory auditors, have tendered their resignation effective August 7. The Board of Directors accepted the resignation during their meeting held on the same day. According to the company's statement, the auditors cited reasons for their departure in their resignation letter, though these specific reasons were not elaborated upon in the public announcement.

It's noteworthy that the resigning auditors did not raise any concerns regarding the company's management, nor did they cite any material reasons for their decision to step down. The Audit Committee and Board members acknowledged M/s Oswal Sunil & Company's contribution to the company's audit processes and standards of auditing.

Q1 Financial Highlights

Coinciding with this announcement, Oswal Greentech also released its unaudited financial results for the quarter ended June 30:

The company demonstrated robust growth in the first quarter, with total income rising by 26.23% year-over-year to ₹2,759.93 lakh. Profit after tax saw a significant increase of 42.57%, reaching ₹666.25 lakh compared to ₹467.31 lakh in the same quarter of the previous fiscal year.

Segment Performance

Oswal Greentech operates in two primary segments: Real Estate and Investment Activities. For Q1 FY2025-26:

• The Real Estate segment reported revenue of ₹1,248.48 lakh, up from ₹859.03 lakh in Q1 FY2024-25.
• Investment Activities generated revenue of ₹673.82 lakh, compared to ₹579.79 lakh in the same quarter last year.

Management Commentary

Aruna Oswal, Wholetime Director & Chairperson of Oswal Greentech Limited, signed off on the financial results and the announcement regarding the auditor's resignation. The company assured stakeholders that there were no concerns raised by the resigning auditors regarding the management or material reasons cited for the resignation.

Looking Ahead

As Oswal Greentech navigates this transition in its auditing partnership, the company's strong financial performance in Q1 FY2025-26 provides a solid foundation. The search for new statutory auditors and the continuation of financial reporting processes will likely be key priorities for the management in the coming weeks.