Tapovan Paper and Board Mills Limited has completed the acquisition of 1,34,585 equity shares of Nath Industries Limited through a court-sanctioned scheme of amalgamation. The acquired shares represent 0.71% of the target company's total paid-up equity share capital, with the transaction being disclosed under Regulation 29(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011.

Amalgamation Details

The acquisition stems from a comprehensive scheme of arrangement and amalgamation under sections 230 to 232 of the Companies Act, 2013. The scheme involved the merger of five transferor companies with Tapovan Paper and Board Mills Limited as the transferee company. However, only three of these transferor companies held shares in Nath Industries Limited.

Regulatory Approval and Timeline

The Hon'ble National Company Law Tribunal, Mumbai Bench, Court-V sanctioned and approved the amalgamation scheme through its order dated November 26, 2025, which was communicated on December 19, 2025. The shares vested in Tapovan Paper and Board Mills Limited on January 9, 2026, being the effective date of filing Form INC-28 with the Registrar of Companies.

Shareholding Pattern Impact

The transaction represents an internal restructuring within the existing promoter group structure. Post-acquisition, Tapovan Paper and Board Mills Limited's shareholding in Nath Industries Limited increased from 10,00,000 shares (5.26%) to 11,34,585 shares (5.97%).

Corporate Structure

Nath Industries Limited maintains its equity share capital structure of ₹19.00 crores, divided into 1,90,00,000 equity shares of ₹10.00 each. The company's shares are listed on BSE Limited under scrip code 502587. The three transferor companies have ceased to exist following the completion of the amalgamation process.

Compliance and Documentation

Tapovan Paper and Board Mills Limited, acting on behalf of the three transferor companies, has filed the necessary disclosure with BSE Limited and copied the compliance officer of Nath Industries Limited. The company confirmed that the actual transfer of shares will be effected in due course of time, with all regulatory requirements being fulfilled as per the approved scheme.

Nath Industries Limited, a prominent player in the paper manufacturing and chemical production sectors, has reported a significant surge in its net profit for the quarter ended June 30. The company's financial performance showcases remarkable growth despite a temporary shutdown of one of its chemical plants.

Financial Highlights

• Net profit soared to Rs 379.37 crore, marking a tenfold increase from Rs 36.77 crore in the same quarter last year.
• Total income from operations reached Rs 118.25 crore, slightly down from Rs 130.03 crore in the previous quarter.
• Basic and diluted earnings per share stood at Rs 2.00.

Segment-wise Performance

Nath Industries operates in two main segments:

1. Paper Manufacturing: This segment generated revenue of Rs 746.31 crore.
2. Chemical Production: The chemical division contributed Rs 426.32 crore to the total revenue.

Chemical Plant Shutdown and Capacity Expansion

The company temporarily shut down its Sulphuric acid plant no. 2 for annual maintenance and modifications. This strategic move is expected to yield positive results in the future:

• The shutdown allowed for essential maintenance work and plant modifications.
• Post-maintenance, the sulphuric acid manufacturing capacity of Plant no. 2 will increase by 20 TPD (Tonnes Per Day).

Management Commentary

Akash Kagliwal, Managing Director of Nath Industries Limited, stated, "We are pleased with our Q1 performance, which demonstrates our resilience and operational efficiency. The temporary shutdown of our chemical plant for maintenance and upgrades is a strategic decision that will enhance our production capabilities in the long run."

Financial Position

As of June 30:

Future Outlook

With the increased manufacturing capacity of its sulphuric acid plant and strong performance in both paper and chemical segments, Nath Industries Limited appears well-positioned for continued growth in the coming quarters.

The company's ability to significantly increase its net profit, even with a temporary plant shutdown, underscores its operational efficiency and strong market position in both the paper and chemical industries.

Note: The financial results have been reviewed by the Audit Committee and approved by the Board of Directors of Nath Industries Limited on August 12.