Pasupati Acrylon Limited , a key player in the acrylon industry, has witnessed a significant change in its promoter shareholding structure. Manish Jain, a member of the company's promoter group, has transferred his entire stake to his brother Vineet Jain as a gift through an off-market transaction.

Transaction Details

The transfer involved 44,29,232 equity shares, representing 4.97% of Pasupati Acrylon's total share capital. This move has resulted in Manish Jain's individual shareholding in the company reducing to nil. The transaction was completed on February 8, 2022.

Impact on Promoter Group Holding

Despite the intra-family transfer, the overall promoter group shareholding remains unchanged. The promoter group collectively continues to hold 5,43,46,213 shares, which accounts for 60.90% of the company's total share capital.

Key Points of the Transaction

Implications

This transfer of shares within the promoter family represents a reshuffling of ownership within the promoter group. However, it's important to note that both Manish Jain and Vineet Jain remain part of the promoter group, indicating that the overall control and management influence of the promoter family in Pasupati Acrylon Limited remains intact.

The move could be part of a family wealth redistribution strategy or succession planning within the promoter group. While the individual shareholding of Manish Jain has reduced to zero, the consolidated promoter group holding remains strong at over 60% of the company's share capital.

Investors and market watchers may want to monitor any potential changes in the company's management or strategic direction following this intra-promoter share transfer, although no immediate changes have been indicated.

Pasupati Acrylon Limited , a key player in the petrochemical industry, has announced a significant business development in its ethanol supply operations. The company has secured an allocation for 9,798 kilolitres (KL) of ethanol for the third quarter of the Ethanol Supply Year (ESY) 2024-25, spanning from May to July 2025.

Allocation Details

The ethanol allocation, awarded by major Oil Marketing Companies (OMCs) including Bharat Petroleum Corporation Limited (BPCL), Indian Oil Corporation Limited (IOCL), and Hindustan Petroleum Corporation Limited (HPCL), carries an estimated contract value of ₹63.00 crore. This allocation is part of the government's Ethanol Blended Petrol Programme (EBPP), aimed at reducing the country's dependence on imported fossil fuels and promoting cleaner energy alternatives.

Production Sources

According to the company's disclosure, the allocated ethanol will be produced from various sources, including:

• Damaged food grains
• Surplus FCI (Food Corporation of India) rice
• Maize

This diversification in feedstock demonstrates Pasupati Acrylon's commitment to utilizing multiple resources for ethanol production, aligning with the national objective of sustainable fuel production.

Strategic Importance

The ethanol supply contract represents a significant business opportunity for Pasupati Acrylon, potentially boosting its revenue stream for the quarter. It also underscores the company's growing role in India's biofuel sector and its contribution to the nation's energy security goals.

Execution Timeline

As per the LODR (Listing Obligations and Disclosure Requirements) filing, Pasupati Acrylon is expected to execute this ethanol supply contract during the third quarter of the Ethanol Supply Year 2024-25, specifically from May to July 2025.

Market Implications

This development is likely to be viewed positively by investors and market analysts, as it provides clear revenue visibility for a specific quarter and demonstrates the company's ability to secure substantial contracts in the competitive ethanol market.

Pasupati Acrylon's involvement in the Ethanol Blended Petrol Programme not only diversifies its business operations but also aligns the company with India's broader objectives of promoting renewable energy and reducing carbon emissions in the transportation sector.

As the ethanol blending targets in India continue to rise, companies like Pasupati Acrylon that have established themselves in this sector may be well-positioned to capitalize on the growing demand for biofuels in the coming years.