Indong Tea Company Limited has reported a significant development in its shareholding structure. The company has disclosed that promoter Madanlal Garg has sold equity shares, as per a regulatory filing submitted to the BSE Limited.

Regulatory Compliance

The disclosure was made in compliance with the Securities and Exchange Board of India (SEBI) regulations concerning substantial acquisition of shares and takeovers. Chandan Gupta, the Company Secretary cum Compliance Officer of Indong Tea Company Limited, submitted the required documentation regarding the share sale transaction.

Multiple Disclosures

According to the LODR (Listing Obligations and Disclosure Requirements) data, the company has made two separate disclosures related to this transaction:

1. A disclosure under Regulation 29(2) & 29(3) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
2. Another disclosure under Regulation 7(2) of the SEBI (Prohibition of Insider Trading) Regulations, 2015.

Transaction Details

While the exact number of shares sold and the transaction value have not been disclosed in the available information, the sale is significant enough to warrant regulatory filings. The transaction involves the sale of equity shares by Madanlal Garg, who belongs to the Promoter category of the company.

Company Information

Indong Tea Company Limited, with its Corporate Identification Number (CIN) L01122WB1990PLC050506, is headquartered at Sikkim Commerce House, 4/1, Middleton Street, Kolkata - 700 071, India. The company's tea garden is located at P.O. - Matelli, Dist.: Jalpaiguri (W.B.), with the nearest railway station being Chalsa.

Market Impact

Investors and market watchers may want to keep an eye on Indong Tea Company's stock in the coming days to observe any potential impact of this share sale on the company's stock price and trading volume.

The company has duly informed the BSE Limited about these transactions, ensuring transparency and compliance with regulatory requirements. As always, investors are advised to consider such insider transactions as part of their overall analysis when making investment decisions.

Indong Tea Company Limited has announced significant corporate actions, including an increase in authorized share capital and a substantial preferential share issue. The company's board has approved these measures, which are now subject to shareholder approval.

Authorized Share Capital Increase

The board of Indong Tea Company Limited has given its approval to increase the company's authorized share capital from Rs 16.00 crore to Rs 24.50 crore. This decision reflects the company's strategic move to create room for potential growth and capital raising activities.

Preferential Share Issue

In a major development, the board has also approved a preferential issue of up to 90 lakh equity shares. The shares will be issued at a price of Rs 30.00 per share, comprising a face value of Rs 10.00 and a premium of Rs 20.00 per share. This move is expected to raise approximately Rs 270.00 crore for the company.

Allocation of Preferential Issue

The preferential issue will be allocated to a total of 26 investors. This group includes:

• Promoters: Hariram Garg and Rajesh Garg
• Related entities: Asian Tea and Export Ltd, IBM Finance and Investment Private Limited, among others

Shareholder Approval Process

To seek shareholder approval for these significant corporate actions, an Extraordinary General Meeting (EGM) has been scheduled for January 8, 2025. The approval will be sought through a special resolution.

Key Dates

This capital raising initiative by Indong Tea Company Limited marks a significant step in the company's financial strategy. The successful completion of this preferential issue could provide the company with substantial funds for its future plans and operations.

Shareholders and potential investors should note that these corporate actions are subject to shareholder approval at the upcoming EGM. The outcome of this meeting will be crucial in determining the company's capital structure and financial position going forward.