Ganon Products: Promoter Further Reduces Stake to 19.69% Through Market Sale

Ganon Products Limited witnessed another significant shareholding change as promoter entity Kamla Business Ventures Private Limited disposed of an additional 93,031 equity shares through open market sale on December 12, 2025. This follows a previous disposal of 1,50,000 shares on December 10, 2025, indicating continued reduction in promoter stake. The latest transaction was disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Latest Transaction Details

The recent disposal represents a 1.00% reduction in shareholding, bringing the promoter's total holding down to 19.69%. The transaction was executed through open market sale on BSE Limited, where the company trades under scrip code 512443.

Transaction Parameter	Details
Shares Disposed	93,031 equity shares
Transaction Mode	Open Market Sale
Transaction Date	December 12, 2025
Disposing Entity	Kamla Business Ventures Private Limited
Percentage Disposed	1.00%
Post-Transaction Holding	18,62,969 shares (19.69%)

Updated Shareholding Pattern

Following the latest disposal, Kamla Business Ventures Private Limited's shareholding has decreased from the previous 20.96% to 19.69%. The promoter entity now holds 18,62,969 equity shares compared to the earlier holding after the December 10 transaction.

Shareholding Details	Current Position
Current Holding	18,62,969 shares
Shareholding Percentage	19.69%
Previous Holding (Dec 10)	19,56,000 shares (20.96%)
Total Reduction	2.50% (over two transactions)

Share Capital Structure

The company's equity share capital structure remains unchanged at ₹9.33 crores. The total diluted share capital continues to be ₹9,33,10,000, with no alterations to the overall capital framework despite the promoter disposals.

Capital Structure	Amount
Equity Share Capital (Before)	₹9,33,10,000
Equity Share Capital (After)	₹9,33,10,000
Total Diluted Share Capital	₹9,33,10,000
Total Voting Capital	₹9,33,10,000

Regulatory Compliance

The disclosure was filed in compliance with SEBI regulations governing substantial acquisitions and takeovers. Kamla Business Ventures Private Limited submitted the necessary documentation to BSE Limited on December 16, 2025. The transaction involved only equity shares carrying voting rights, with no encumbered shares, warrants, or convertible securities being part of this disposal. The selling entity maintains its status as a promoter group entity despite the reduced shareholding percentage.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-4.83%	-4.47%	-0.66%	+6.16%	+68.44%	+50.10%

Ganon Products Limited has reported a significant increase in net profit for the second quarter ended September 30, 2025, despite auditors raising red flags over outstanding receivables and statutory dues.

Financial Performance

The company's unaudited financial results for Q2 FY2026 show:

Metric	Q2 FY2026	Q1 FY2026	YoY Change
Net Profit	₹14.10	₹1.61	775.78%
Revenue from Operations	₹121.40	-	N/A
Total Income	₹137.52	₹10.90	1161.65%

The company's performance shows a substantial improvement in profitability compared to the previous quarter. However, the year-on-year comparison for revenue indicates a significant decline from ₹692.90 in Q2 FY2025 to ₹121.40 in Q2 FY2026.

Auditor Concerns

Despite the profit surge, auditors have highlighted several areas of concern:

Outstanding Receivables: Trade receivables of ₹79.47 are outstanding, including:
- ₹18.97 from Ruchi Cotton Fibers (outstanding since November 2024)
- ₹60.51 from Mangalmurty Cotspin (outstanding since March 2024)
Statutory Dues: The company has defaulted on statutory dues totaling over ₹25, with some payments pending since March 2023.
Trade Payables: A substantial increase in trade payables from ₹953.11 in the previous year to ₹41,267.00 (as per the news data, though this figure seems unusually high and may require verification).
Interest-Free Loans: Concerns were raised about interest-free loans advanced by the company.

Balance Sheet Highlights

The company's balance sheet as of September 30, 2025, shows:

Metric	September 30, 2025	March 31, 2025
Total Assets	₹3,601.82	₹2,597.99
Total Equity	₹1,118.72	₹1,102.55
Total Liabilities	₹2,483.10	₹1,495.44

The significant increase in total assets and liabilities between March and September 2025 warrants attention, particularly given the auditors' concerns.

Management Response

The company's management has not provided specific comments on the auditors' concerns in the available data. Investors and stakeholders may seek clarification on the steps being taken to address these issues, particularly regarding the recovery of outstanding receivables and the settlement of statutory dues.

Conclusion

While Ganon Products has reported a substantial increase in quarterly profit, the auditors' concerns raise questions about the company's financial health and operational management. The significant discrepancies in receivables, payables, and statutory dues compliance suggest that investors should approach the company's financial results with caution and seek further clarification from management on these issues.