Damodar Industries Limited , a prominent player in the textile industry, has witnessed a significant change in its promoter shareholding structure. Arunkumar Biyani, a key promoter of the company, has substantially increased his stake through an inter-se transfer of shares.

Transaction Details

Arunkumar Biyani acquired 1,320,000 equity shares, representing 5.66% of Damodar Industries' diluted share capital. This acquisition was executed through an inter-se transfer in the nature of a gift, with no monetary consideration involved. The shares were transferred from fellow promoters Mr. Anil D Biyani and Mrs. Sanju Biyani.

Impact on Shareholding

The transaction has resulted in a notable shift in the promoter group's individual holdings:

As evident from the data, Arunkumar Biyani's shareholding has increased significantly from 5.37% to 23.90% of the company's total share capital. Conversely, the combined holding of the transferors, Anil D Biyani and Sanju Biyani, has decreased from 16.49% to 10.82%.

Regulatory Compliance

The share transfer was conducted under the exemption provisions of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Specifically, it falls under Regulation 10(1)(a)(i) and Regulation 10(1)(a)(ii), which provide exemptions for certain inter-se transfers among qualifying persons.

In compliance with regulatory requirements, the necessary disclosures were made within the specified timeline. The company filed the required disclosure under Regulation 10(5) in advance of the actual transfer date.

Implications

This substantial increase in Arunkumar Biyani's stake strengthens his position within the promoter group of Damodar Industries Limited. While the overall promoter holding remains unchanged, the redistribution of shares among the promoters could potentially influence the company's decision-making dynamics.

It's important to note that this transaction, being a gift transfer between promoters, does not involve any direct capital inflow or outflow for the company. The move appears to be part of the promoter group's internal restructuring strategy.

Investors and market watchers will likely keep a close eye on any subsequent changes in the company's governance or strategic direction following this significant shift in individual promoter holdings.

Damodar Industries , a prominent player in the textile goods segment, has reported a significant turnaround in its financial performance for the first quarter. The company's unaudited financial results reveal a net profit of Rs 232.19 lakh, marking a substantial improvement from the net loss of Rs 150.65 lakh recorded in the same quarter of the previous year.

Financial Highlights

• Net Profit: Rs 232.19 lakh (Q1) vs. Net Loss of Rs 150.65 lakh (Q1 previous year)
• Net Sales: Rs 10,335.27 lakh, down from Rs 11,930.54 lakh in the corresponding quarter last year
• Total Income: Rs 10,633.34 lakh, compared to Rs 12,325.78 lakh in the prior year quarter
• Earnings Per Share (EPS): Rs 1.00 (basic and diluted)

Operational Performance

Despite a decrease in net sales, Damodar Industries has managed to turn its operations profitable. The company's profit from operations before exceptional items stood at Rs 167.42 lakh, a significant improvement from the loss of Rs 521.38 lakh in the same period last year.

Financial Table

Management Commentary

The Board of Directors reviewed and approved these financial results at their meeting held on August 2. Arunkumar Biyani, Chairman of Damodar Industries Limited, expressed satisfaction with the company's performance, highlighting the successful turnaround despite challenging market conditions.

Company Overview

Damodar Industries Limited operates within the textile goods segment. The company maintains a paid-up share capital of Rs 1,165 lakh and continues to focus on its core business activities in the textile industry.

Auditor's Review

Devpura Navlakha & Co., Chartered Accountants, conducted a limited review of the financial results. They reported that nothing has come to their attention that causes them to believe that the financial statements do not present a true and fair view in accordance with applicable accounting standards and other recognized accounting practices and policies.

The company's ability to achieve profitability in a quarter where revenues declined demonstrates effective cost management and operational efficiency. Stakeholders will be watching closely to see if this positive trend can be sustained in the coming quarters.