Paul Merchants has witnessed a significant change in its promoter shareholding structure through an inter-family share transfer. Sat Paul Bansal, a promoter of the company, has acquired a substantial stake from another promoter family member, reshaping the ownership dynamics within the promoter group.

Key Highlights of the Transaction

• Acquisition Details: Sat Paul Bansal acquired 490,510 equity shares, representing 15.59% of the total voting power in Paul Merchants.
• Transfer Method: The shares were transferred through an off-market inter-family gift from Sarita Rani Bansal, another promoter of the company.
• Date of Transaction: The share transfer took place on September 15, 2025.

Impact on Shareholding

The inter-family transfer has resulted in a significant redistribution of shares within the promoter group:

Promoter Group Holding

Despite the substantial transfer of shares, the combined holding of the promoter group, including persons acting in concert, remains unchanged at 74.65% of the total share capital.

Regulatory Compliance

The transaction was executed in compliance with SEBI regulations:

• The transfer falls under Regulation 10(1)(a)(i) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
• Appropriate disclosures were made to the BSE Limited as per Regulation 29(2) of the SEBI regulations.

Company Overview

Paul Merchants is listed on the BSE with a total equity share capital of 3,084,000 shares, each with a face value of Rs. 10. The company's registered office is located in New Delhi, with its corporate office in Chandigarh.

This inter-family share transfer underscores the ongoing dynamics within the promoter group of Paul Merchants, while maintaining the overall promoter stake in the company. Investors and market watchers may want to note this change in the individual shareholding pattern of the promoters, although it does not affect the aggregate promoter holding in the company.

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.