Scoobee Day Garments (India) Limited has announced that its promoters plan to divest a portion of their shareholding to comply with minimum public shareholding requirements. The disclosure was made in accordance with SEBI regulations governing listed companies.

Promoter Share Sale Details

The company's promoters, Boby M. Jacob and Minni Boby Jacob, have disclosed their intention to sell equity shares in the open market. The sale is structured to meet regulatory compliance requirements under various SEBI guidelines and securities regulations.

Regulatory Compliance Framework

The share sale is being undertaken to comply with minimum public shareholding requirements as mandated by securities regulations. The transaction falls under the purview of multiple regulatory frameworks including Rule 19A(1) of the Securities Contract Regulations Rules, 1957, and Regulation 38 of the SEBI LODR Regulations.

The promoters have confirmed that the sale will be executed within a period not exceeding 12 months from the announcement date. Additionally, they have undertaken not to purchase any shares in the open market on dates when shares are being sold by them.

Sale Execution Parameters

The divestment will be carried out in the open market through one or more tranches, ensuring compliance with trading volume restrictions. The promoters have confirmed that the amount of shares to be sold will not exceed the trading volume of the company's shares during the preceding 12 months.

Promoter Information

Both promoters are based in Kerala, with their registered address at Meckamkunnel House, Vilangu P.O, Ernakulam, Kerala-683564. The disclosure has been made in accordance with Clause 7(ii) of Paragraph 3 of the SEBI Circular SEBI/HO/CFD/PoD2/P/CIR/2023/18 dated February 3, 2023.

Company Background

Scoobee Day Garments (India) Limited, formerly known as Victory Paper And Boards (India) Limited, is incorporated under CIN L27100KL1994PLC008083. The company's registered office is located in Kerala, while its manufacturing facility operates from Tamil Nadu.

Scoobee Day Garments (India) Limited has reported a significant change in its promoter group shareholding structure, with the total promoter stake rising to 79.77% from 74.99%. This shift comes as a result of a series of share acquisitions and transfers within the promoter group.

Key Changes in Shareholding

Notable Developments

Anna Aluminium Company's Increased Stake

The most significant change came from Anna Aluminium Company Pvt. Ltd, which increased its shareholding by 6.21 percentage points to 44.26%.

New Promoter Group Member

Kitex Limited has been categorized as a new member of the promoter group, acquiring a 6.04% stake in the company.

Reduced Stakes

Both Boby M Jacob and Minni Boby Jacob saw reductions in their shareholdings, with their stakes decreasing by 4.70 and 2.77 percentage points, respectively.

Regulatory Compliance

The increase in promoter group shareholding has pushed the public shareholding below the mandatory 25% threshold set by the Securities and Exchange Board of India (SEBI). In response to this, Scoobee Day Garments has acknowledged the situation and confirmed its commitment to comply with regulatory requirements.

Compliance Timeline

The company has stated that it will adhere to Rule 19A(2) of the Securities Contract (Regulations) Rules, 1957. This rule mandates that when public shareholding falls below 25%, the company must restore it to the minimum required level within a maximum period of twelve months.

Implications for Investors

This restructuring of shareholding within the promoter group may signal a shift in the company's strategic direction. Investors should keep a close watch on any subsequent announcements or changes in the company's operations that might follow this significant alteration in ownership structure.

As the company works towards restoring the minimum public shareholding, there may be opportunities for public investors in the coming months. However, potential investors should conduct thorough research and consider seeking professional advice before making investment decisions based on these developments.

The market will be keenly observing how Scoobee Day Garments manages this transition and complies with regulatory requirements, which could impact investor sentiment and stock performance in the near term.