Paramount Communications Limited has announced its decision to divest its entire stake in its wholly owned subsidiary, Valens Technologies Private Limited (VTPL). This strategic move comes just over two years after the initial acquisition, reflecting a shift in the company's investment strategy amid challenging market conditions.

Divestment Details

The Banking Finance Committee of Paramount Communications has approved the sale of its entire holding of 1,93,996 equity shares in VTPL. The divestment agreement was signed on November 6, 2025, with the transaction expected to conclude by November 15, 2025.

Financial Aspects

The divestment transaction involves the following key financial details:

Rationale for Divestment

The company cited negative growth and uncertainty about future business prospects as the primary reasons for this divestment. Paramount Communications considers this move to be in the best interest of the company, aiming to mitigate potential hardships that could arise from continued investment in VTPL.

Buyers and Transaction Details

The buyers of VTPL's shares are:

1. Marwar Portfolio Private Limited
2. Mr. Sanjeev Kumar Jain

It's worth noting that neither of the buyers is related to Paramount Communications' promoter group, ensuring an arm's length transaction.

Impact on Paramount Communications

While VTPL contributed to Paramount Communications' financials, its overall impact appears to be limited:

• Revenue Contribution: 1.33% of Paramount Communications' total revenue
• Net Worth Contribution: 0.35% of Paramount Communications' total net worth

Regulatory Compliance

The company has duly informed the stock exchanges about this material development, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

This divestment marks a significant corporate action for Paramount Communications, reflecting its adaptive strategy in response to changing market dynamics and subsidiary performance.

Paramount Communications , a leading player in the wires and cables industry, has announced its financial results for the first quarter, along with several key corporate decisions.

Financial Performance

For the quarter ended June 30, Paramount Communications reported a robust growth in its standalone revenue from operations, which stood at Rs 450.87 crore, marking a significant increase from Rs 313.32 crore in the corresponding quarter of the previous year. This represents a year-on-year growth of approximately 43.90%.

However, the company's net profit for the quarter saw a decline, coming in at Rs 19.00 crore compared to Rs 25.18 crore in the same period last year. This decrease in profit can be partially attributed to increased expenses and market conditions.

The company's other income for the quarter included a notable one-time gain of Rs 13.91 crore, received upon the maturity of a keyman insurance policy with Life Insurance Corporation of India.

Segment Performance

Paramount Communications operates in two reportable segments: Wires and Cables, and Pipes. The Wires and Cables segment, which is the company's primary business, generated a revenue of Rs 450.87 crore for the quarter. The Pipes segment contributed Rs 0.52 crore to the total revenue.

Corporate Updates

The Board of Directors, in their meeting held on August 13, made several important decisions:

1. Annual General Meeting: The 31st Annual General Meeting (AGM) of the company has been scheduled for September 29, at 3:00 p.m. The meeting will be conducted through Video Conferencing or Other Audio Visual Means (VC/OAVM).

2. Book Closure: The company has fixed the book closure dates from September 23 to September 29 (both days inclusive) in connection with the AGM.

3. Director Continuation: Based on the recommendation of the Nomination and Remuneration Committee, the Board has approved the continuation of Mr. Vijay Maheshwari as a Director of the company upon reaching the age of 75 years. This decision is subject to shareholder approval at the upcoming AGM.

   Mr. Maheshwari, a fellow member of the Institute of Chartered Accountants of India, brings over 46 years of experience in finance to the board. He is recognized for his vision and dynamism, and has been actively involved in promoting trade and commerce, serving as the Mentor and past Chairman of the CII-ER Banking Core Committee.

Auditor's Review

The financial results for the quarter have undergone a limited review by the company's statutory auditors, P. Bholusaria & Co. The auditors have expressed an unmodified opinion on these results.

Paramount Communications continues to navigate the dynamic market conditions, focusing on its core competencies in the wires and cables sector while also maintaining a presence in the pipes segment. The company's strong revenue growth demonstrates its resilience and market position, despite the challenges reflected in the reduced net profit figures.

Investors and stakeholders will be keenly watching the company's performance in the coming quarters, as well as any strategic decisions that may be announced at the upcoming AGM.