Eimco Elecon (India) Limited , a prominent player in the Indian manufacturing sector, has received a significant request that could alter its shareholding structure. Tamrock Great Britain Holdings Limited, previously classified under the 'Promoter Group' category, has formally applied to be reclassified as a 'Public' shareholder.

Divestment Details

The reclassification request follows a substantial divestment by Tamrock. On September 24 and 25, Tamrock sold 14,23,875 equity shares, representing 24.68% of Eimco Elecon's total issued and paid-up equity share capital. This sale was executed through an Offer for Sale mechanism on the stock exchange.

Current Shareholding Status

Following this significant transaction, Tamrock no longer holds any equity shares in Eimco Elecon. This complete exit from the company's shareholding forms the basis of their reclassification request.

Reclassification Request Details

In a letter dated October 1, addressed to Eimco Elecon's Compliance Officer, Tamrock outlined several key points supporting their reclassification request:

1. No board representation or key managerial positions held by Tamrock or its nominees.
2. No participation in the company's management.
3. Absence of special rights through formal or informal arrangements, including shareholder agreements.
4. Compliance with regulatory requirements for reclassification, including not holding more than 10% voting rights and not exercising control over company affairs.

Next Steps

Eimco Elecon's Board of Directors is scheduled to consider this reclassification request in their upcoming meeting on October 9. The company has assured that all necessary steps will be taken in compliance with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance

Tamrock has committed to adhering to the conditions specified in SEBI Listing Regulations post-reclassification. This includes maintaining compliance with specific clauses for at least three years from the date of reclassification to ensure continued status as a public shareholder.

This development marks a significant change in Eimco Elecon's shareholding pattern and could potentially impact the company's ownership structure. Shareholders and market observers will be keenly watching the outcome of the board meeting scheduled for October 9, which will decide on this reclassification request.

Eimco Elecon (India) Limited , a prominent player in the Indian manufacturing sector, has undergone a significant change in its shareholding structure. Tamrock Great Britain Holdings Limited, previously a major promoter group entity of the company, has completely divested its stake through a strategic sale on the stock exchanges.

Offer for Sale Details

The sale was executed through an offer for sale (OFS) mechanism on September 24 and 25, utilizing the designated window on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The transaction was structured to accommodate different investor categories:

• September 24: Reserved for non-retail investors
• September 25: Open to retail investors and non-retail investors with unallotted bids carried forward from the previous day

Transaction Specifics

Impact on Shareholding

Following this significant transaction:

• Tamrock Great Britain Holdings' shareholding in Eimco Elecon has reduced from 24.68% to nil
• The company's total equity share capital remains unchanged at 57,68,385 shares, valued at ₹5,76,83,850.00

This divestment marks a notable shift in Eimco Elecon's ownership structure, potentially influencing the company's strategic direction and governance. Market participants and stakeholders will likely be keen to observe any subsequent changes in the company's operations or management approach following this exit by a major promoter entity.

The successful execution of this large block sale through the exchange mechanism demonstrates the liquidity and efficiency of Indian stock markets in handling significant ownership transitions. It also highlights the continued interest in Eimco Elecon's equity, as the substantial stake found buyers through the structured OFS process.

Investors and analysts may want to monitor any forthcoming announcements from Eimco Elecon regarding potential changes in board composition or strategic initiatives that might follow this significant shareholding change.