Kothari Industrial Corporation Limited has filed an application with BSE Limited seeking approval to reclassify certain promoter entities from the promoter category to the public category. This move aligns with the Securities and Exchange Board of India (SEBI) regulations.

Key Details of the Reclassification Request

The company has disclosed that the following entities have applied for reclassification:

Timeline and Process

The reclassification application was submitted on December 3, 2025, following board meeting outcomes and previous intimations regarding the proposed category change.

Compliance with SEBI Regulations

While specific details about compliance were not provided in the update, it's standard practice for such applications to confirm that the applicants meet the necessary conditions for reclassification as stipulated by SEBI. These conditions typically include:

• Holding less than 10% of the total voting rights in the company
• Not exercising control over the affairs of the company, either directly or indirectly
• Not having any special rights through formal or informal arrangements, including shareholder agreements

Next Steps

The application will be reviewed by BSE Limited. Kothari Industrial Corporation Limited may need to provide additional information or clarifications as required by the regulatory authorities during this process.

Implications of Reclassification

If approved, this reclassification could potentially:

1. Alter the company's shareholding structure
2. Impact the public float of the company's shares
3. Change the disclosure requirements for the entities involved

It's important to note that the reclassification process is subject to regulatory approval and must comply with all relevant SEBI guidelines.

Investors and stakeholders of Kothari Industrial Corporation Limited should monitor further announcements regarding the outcome of this reclassification application, as it may have implications for the company's ownership structure and governance.

Kothari Industrial Corporation Limited has issued a revised outcome of its board meeting held on November 29, 2025, correcting a crucial detail regarding the reclassification of certain individuals from the Promoter and Promoter Group category to the Public category.

Key Correction

The company has amended its earlier statement, now clarifying that shareholder approval is indeed required for the proposed reclassification. This correction is in line with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.

Reason for Shareholder Approval

The necessity for shareholder approval stems from the following factors:

1. Ms. Asha Thayer, one of the individuals seeking reclassification, is related to an existing promoter, Mr. Pradip D. Kothari.
2. The combined shareholding of Ms. Asha Thayer and Mr. Pradip D. Kothari equals 41.00% of the total voting rights of the company.

Regulatory Context

According to the proviso to Regulation 31A(3)(a) of the SEBI (LODR) Regulations, 2015, shareholder approval becomes mandatory when:

• The person seeking reclassification and persons related to the promoter(s) seeking reclassification have a combined shareholding of not less than 1.00% of the total voting rights in the listed entity.

Reclassification Approval Process

The Board of Directors has granted its approval for the reclassification request, subject to the following conditions:

1. Shareholders' approval
2. Stock Exchange approval
3. Other necessary approvals, if any

Implications

This correction highlights the importance of accurate regulatory compliance and transparent communication with stakeholders. It ensures that the company adheres to SEBI regulations and maintains proper corporate governance practices.

Conclusion

Kothari Industrial Corporation's prompt correction of its board meeting outcome demonstrates its commitment to regulatory compliance and transparent disclosure. Shareholders and investors should take note of this development, as it will require their participation in the approval process for the proposed reclassification of promoter shareholding.