Balaji Amines Limited has disclosed the creation of an encumbrance on promoter shares under Regulation 31 of SEBI Takeover Regulations. The disclosure, dated January 2, 2026, pertains to the pledging of shares by promoter Gaddam Hemanth Reddy to secure credit facilities for the company's business operations.

Share Pledge Details

The encumbrance involves the pledging of shares by promoter Gaddam Hemanth Reddy to HDFC Bank Limited. The pledge was created on December 30, 2025, as security for availing credit facilities that will be utilized for the company's principal business activities.

Promoter Shareholding Position

Gaddam Hemanth Reddy holds a total of 8,17,746 shares in Balaji Amines Limited, representing 2.52% of the company's total share capital. Prior to this transaction, the promoter had no existing encumbrances on his shareholding.

Purpose and Compliance

The pledge has been created specifically as security for credit facilities from HDFC Bank Limited. The funds obtained through these credit facilities will be utilized for the company's principal business activities. The disclosure has been made in compliance with Regulation 31(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The company has informed both BSE Limited and National Stock Exchange of India Limited about this encumbrance creation, maintaining transparency with all stakeholders regarding changes in promoter shareholding patterns.

Balaji Amines Limited, a prominent chemical manufacturing company, faces allegations of violating the Drugs and Cosmetics Act, 1940. The company and all its directors have been summoned to appear before the Court of Honourable Additional Principal Judge in Ahmedabad on December 4, 2025.

Legal Proceedings

The court summons, issued on November 11, 2025, and received by Balaji Amines on November 23, 2025, alleges violations under multiple sections of the Drugs and Cosmetics Act, 1940. The specific sections cited include:

• Section 16(1)(a)
• Section 18(a)(i)
• Section 18(c)
• Section 34
• Section 27(b)(ii)
• Section 27(d)

These sections typically deal with various aspects of drug manufacturing, distribution, and quality control.

Company's Response

In response to the summons, Balaji Amines has stated:

1. The company and all its directors have been directed to appear either in person or through a pleader on the specified date.
2. There is no material impact on its financials, operations, or other activities as a result of this legal action.
3. No additional documents such as notices, complaints, or copies of petitions have been received beyond the summons itself.

Disclosure Details

As per regulatory requirements, Balaji Amines has disclosed the following information:

Investor Considerations

While Balaji Amines maintains that there is no material impact on its operations or financials, investors should monitor the developments of this case. Legal proceedings may potentially lead to reputational damage, fines, or operational changes, even if the immediate financial impact is not apparent.

Stakeholders are advised to follow further disclosures from Balaji Amines and any updates regarding the court proceedings scheduled for December 4, 2025.

It's important to note that at this stage, these are allegations, and the outcome of the legal process is yet to be determined. The company's response and the court's decision will be crucial in assessing any long-term implications for Balaji Amines.