Banganga Paper Industries Limited has secured shareholder approval for the divestment of its entire investment in a material subsidiary through a special resolution passed at an Extraordinary General Meeting held on January 14, 2026. The transaction represents a significant corporate restructuring move for the Maharashtra-based company.

Transaction Details

The sale involves the complete divestment of the company's investment in its material subsidiary for a total consideration of ₹11.22 crores. The transaction details are structured as follows:

Acquirer Information

The buyers comprise three members of the promoter group, establishing this as a related party transaction conducted on an arm's length basis:

• Mr. Karbhari Pandurang Dhatrak (PAN: ABFPD7972A)
• Mrs. Jayashri Karbhari Dhatrak (PAN: AELPD2027K)
• Mr. Chetan Karbhari Dhatrak (PAN: AFXP0099H)

All acquirers are located at 18, Shramadeep Bunglow, Matoshti Nagar, Near Chandak Circle, Tidake Colony, Nashik – 422002, and are confirmed promoters of the company.

Financial Impact

The material subsidiary has been a significant contributor to the company's financial performance. During the last financial year, the subsidiary generated substantial revenue:

Regulatory Compliance

The transaction has been structured in full compliance with regulatory requirements under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has provided detailed disclosures as required under Regulation 30 read with Schedule III of the listing regulations.

The sale does not fall under any scheme of arrangement, and compliance with Regulation 37A of LODR Regulations is not applicable for this transaction. Additionally, the transaction does not involve any slump sale arrangements requiring additional amalgamation or merger-related disclosures.

Banganga Paper Industries Limited has announced a comprehensive preferential issue of equity shares and convertible warrants following shareholder approval at its Extraordinary General Meeting held on January 14, 2026. The company successfully concluded the EGM with shareholders demonstrating strong support by approving all 10 proposed resolutions, including authorization for the preferential issue.

Preferential Issue Details

The company has disclosed details of its preferential issue under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The issue comprises multiple components targeting different investor categories.

Share Swap Arrangements

The preferential issue includes significant share swap transactions with non-promoter investors. The largest allocation goes to Ronak Jain with 3,28,34,551 shares, followed by Sarita Jain with 3,21,40,772 shares, and Jasmine with 2,97,45,582 shares.

Cash Issue and Convertible Warrants

The cash component of the preferential issue targets multiple non-promoter investors, with Deepak Saraf receiving the largest allocation of 1,65,75,000 shares. Estara Ventures Private Limited and Himathsingh R Marak are also significant beneficiaries with allocations of 1,50,00,000 and 1,48,05,000 shares respectively.

The convertible warrants component includes allocations to the Jain family members, with Karishma Jain receiving 60,00,000 warrants, while Ronak Jain and Priyanka Jain each receive 50,00,000 warrants.

EGM Success and Corporate Transformation

The EGM was conducted through video conferencing, commencing at 12:02 PM and concluding at 12:46 PM on January 14, 2026. Despite technical difficulties that delayed the originally scheduled 11:00 AM start time, the meeting proceeded with robust shareholder participation, demonstrating 100.00% participation from public non-institutional shareholders.

The approved resolutions included increase in borrowing limits, enhancement of authorized share capital structure, official name change from Inertia Steel Limited to Banganga Paper Industries Limited, and authorization for the preferential issue of equity shares and convertible warrants.

Regulatory Compliance and Next Steps

The preferential issue has been structured in compliance with Sections 62(1)(c) and 42 of the Companies Act, 2013, and SEBI regulations. For the convertible warrants, investors will pay 25% of the warrant price at allotment, with the remaining 75% payable upon conversion to equity shares. The newly issued shares will rank pari passu with existing equity shares and will be listed on the stock exchange subject to necessary approvals.

This comprehensive capital raising initiative positions Banganga Paper Industries Limited for its next phase of growth under its new corporate identity, with the company having successfully transitioned from its former identity as Inertia Steel Limited.