Paul Merchants Finance Private Limited (PMFPL), a wholly owned subsidiary of Paul Merchants Limited, has successfully completed the second tranche of its Gold Loan Business Undertaking sale to L&T Finance Limited. The transaction, valued at Rs 77.49 crore, marks a significant development in the company's strategic divestment process.

Transaction Details

The total consideration for this tranche amounts to Rs 77.49 crore, as disclosed in a regulatory filing by Paul Merchants Limited. The breakdown of the transaction is as follows:

Key Points

• Amount in Abeyance: Rs 1.21 crore has been kept in abeyance pending legal and tax opinion on asset depreciation treatment.
• Retained Amount: L&T Finance has retained Rs 15.00 crore as per the terms of the Business Transfer Agreement (BTA).
• Received Amount: PMFPL has received the balance of Rs 61.28 crore in accordance with the agreement conditions.

Background

This transaction is part of a larger deal that was first announced in February, with subsequent updates provided in June. The sale of the Gold Loan Business Undertaking is being conducted through a slump sale method.

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The information was submitted to the BSE Limited, where Paul Merchants Limited is listed.

Future Outlook

The completion of this second tranche marks a significant milestone in the divestment process. Investors and stakeholders will likely be watching for any further developments or tranches in this strategic sale. The transaction's impact on Paul Merchants Limited's financial position and future business strategy remains to be seen in the coming quarters.

In a significant development for Paul Merchants Limited, Sat Paul Bansal is set to acquire a substantial stake in the company through a gift transaction. The move, scheduled for September 15, 2025, will see Bansal, along with Persons Acting in Concert (PACs), acquire 4,80,540 equity shares, representing 15.58% of the paid-up share capital, from Sarita Rani Bansal.

Transaction Details

The acquisition is structured as a gift between husband and wife, both of whom are existing promoters of Paul Merchants Limited. As per the disclosure under Regulation 10(5) of SEBI regulations:

• Acquirer: Sat Paul Bansal
• Transferor: Sarita Rani Bansal
• Number of Shares: 4,80,540 equity shares
• Percentage of Stake: 15.58% of paid-up share capital
• Transaction Date: September 15, 2025
• Nature of Transaction: Gift (No monetary consideration)

Market Implications

The 60-day volume weighted average market price of Paul Merchants Limited stands at Rs. 765.05 per share. However, as this is a gift transaction, no monetary consideration is involved.

Shareholding Changes

The transaction will result in significant changes to the shareholding structure of Paul Merchants Limited:

Regulatory Compliance

The acquisition is exempt from making an open offer under Regulation 10(1)(a)(i) of SEBI takeover regulations. The acquirer has declared compliance with all conditions specified under this regulation.

Additional Information

The disclosure also mentions other Persons Acting in Concert (PACs):

• Rajneesh Bansal
• Paul Excursions Private Limited

These PACs, along with Sat Paul Bansal, will see their combined shareholding increase from 41.04% to 56.62% post-transaction.

This inter-se transfer between promoters is expected to consolidate the promoter group's holding in Paul Merchants Limited.