SMS Pharmaceuticals Limited (SMS Pharma) recently announced a significant change in its shareholding structure. Vistra ITCL (India) Limited, acting as a debenture trustee, has released a substantial number of pledged shares of the company. This move has led to a notable reduction in Vistra's encumbered shareholding in SMS Pharma.

Key Details of the Share Release

Impact on Shareholding Structure

The release of these pledged shares has significantly altered Vistra ITCL's position in SMS Pharmaceuticals. Prior to this action, Vistra held 23.58% of the company's total share capital in an encumbered form. Following the release, this figure has dropped to 12.24%, marking a substantial decrease in Vistra's pledged holdings.

Company's Share Capital

SMS Pharmaceuticals' total equity share capital remains unchanged at 9,36,52,030 shares, each with a face value of Rs. 1. This information is consistent with the shareholding pattern reported for the quarter ending September 2025.

Regulatory Compliance

Vistra ITCL filed this disclosure under SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company noted that while the primary responsibility for compliance lies with the lender and debenture holder, Vistra took this step as a precautionary measure in its capacity as a security and debenture trustee.

Additional Corporate Updates

SMS Pharmaceuticals has scheduled an Investor's Conference Call for November 11, 2025, at 11:00 am IST. This call will discuss the company's financial results and performance for the second quarter and half-year ended September 30, 2025. The Q2 and H1 FY26 results are set to be announced on November 8, 2025.

This development in SMS Pharmaceuticals' shareholding structure, particularly the significant reduction in pledged shares, may be of interest to investors and market analysts monitoring the company's financial health and ownership patterns.

SMS Pharmaceuticals Limited has announced a significant change in its security arrangement concerning its shareholding in VKT Pharma Limited, an associate company. The Board of Directors approved this change on October 16, 2025, as part of a refinancing deal for VKT Pharma.

Key Details of the Transaction

Transaction Overview

SMS Pharmaceuticals has agreed to provide a Non-Disposal Undertaking to the Export-Import Bank of India (Exim Bank). This undertaking confirms that the company will not sell, transfer, or encumber its 38,50,165 equity shares in VKT Pharma without Exim Bank's prior written consent.

This new arrangement is part of VKT Pharma's efforts to refinance its existing Non-Convertible Debentures (NCDs) of Rs. 130.00 crores, previously subscribed by Avendus Finance Private Limited. The refinancing involves a new rupee term loan of Rs. 150.00 crores from Exim Bank.

Impact and Related Party Aspects

The transaction involves related parties, as SMS Pharmaceuticals' Chairman & Managing Director, Ramesh Babu Potluri, and Executive Director, Vamsi Krishna Potluri, hold directorships in VKT Pharma. However, the company states that the transaction is conducted at arm's length.

SMS Pharmaceuticals' liability under this new arrangement is limited to the extent of its shareholding in VKT Pharma, with an investment value of Rs. 45.00 crores. This change in security structure is expected to result in a reduction of the company's liability compared to the previous arrangement.

The existing security structure with Avendus Finance is set to be replaced with the new undertaking to Exim Bank by November 30, 2025. This move represents a strategic shift in how SMS Pharmaceuticals secures its investment in VKT Pharma while supporting the associate company's refinancing efforts.

As the pharmaceutical sector continues to evolve, such financial maneuvers highlight the intricate relationships between companies and their strategic approaches to managing investments and liabilities. Investors and market watchers will likely keep a close eye on how this change impacts both SMS Pharmaceuticals and VKT Pharma in the coming months.