Prozone Realty Limited has received requests from four members of its promoter group seeking reclassification from the 'Promoter Group' category to the 'Public' category. This move could potentially alter the company's shareholding structure and governance dynamics.

Reclassification Requests

The requests were received from the following individuals and entities:

1. Rakesh Rawat Family Trust
2. Ghanshyam Rawat
3. Pushplata Rawat
4. Vandana Vaidh

Current Shareholding

Key Points of the Requests

• All applicants have stated that they have no influence over the company's business decisions.
• They are not engaged in the management or day-to-day affairs of the company.
• The applicants do not have any rights to appoint directors or control policy decisions.

Next Steps

Prozone Realty has confirmed that it will process these requests in compliance with Regulation 31A of the SEBI Listing Regulations. The company plans to:

1. Present the requests to the Board of Directors within two months for analysis.
2. Seek necessary approvals from regulatory authorities, including stock exchanges.

Regulatory Compliance

The applicants have provided assurances that they meet the conditions for reclassification as per SEBI regulations, including:

• Not holding more than 10% of the total voting rights in the company
• Not exercising control over the company's affairs
• Not having special rights through formal or informal arrangements
• Not being represented on the Board of Directors
• Not acting as Key Managerial Personnel
• Not being classified as 'willful defaulters' or fugitive economic offenders

Impact on Shareholding

If approved, this reclassification would move 35,87,416 shares (approximately 2.35% of the company's equity) from the 'Promoter Group' category to the 'Public' category.

The company will now follow the prescribed regulatory process for these reclassification requests. Shareholders and investors should monitor further announcements for updates on this corporate action.

Prozone Realty Limited, a prominent player in the real estate sector, has announced robust financial results for the first quarter, along with plans to expand its business through the incorporation of two new wholly-owned subsidiaries.

Financial Highlights

The company's consolidated financial results for Q1 show significant improvement compared to the same period last year:

• Total income from operations surged to Rs 3,823.52 crore, up 18.80% from Rs 3,219.19 crore in the previous year's Q1.
• Net profit after tax turned positive at Rs 378.26 crore, compared to a loss of Rs 568.50 crore in the corresponding quarter last year.
• Earnings per share (EPS) improved to Rs 0.05, up from a loss of Rs 0.30 per share in the same quarter last year.

Segment Performance

Prozone Realty's business segments showed mixed results:

New Subsidiaries

In a strategic move to expand its operations, Prozone Realty's Board of Directors has approved the incorporation of two wholly-owned subsidiaries:

1. Prozone Dream Realtors Pvt Ltd
2. Prozone Horizons Pvt Ltd

Both entities will focus on the construction and real estate sectors, with Prozone Realty holding 100% shareholding in each company. The incorporation is subject to approval from the Ministry of Corporate Affairs.

Investment Details

• Prozone Realty will invest Rs 1,00,000 in each subsidiary for 10,000 equity shares at a par value of Rs 10 per share.
• The company stated that no additional sectoral approvals are required from government or regulatory bodies for these incorporations.

Management Commentary

Nikhil Chaturvedi, Managing Director of Prozone Realty Limited, commented on the results, stating, "Our Q1 performance demonstrates the resilience and growth potential of our business model. The significant improvement in our financial metrics, particularly the turnaround to profitability, is encouraging. The decision to incorporate two new subsidiaries aligns with our strategy to strengthen our presence in the real estate sector and capitalize on emerging opportunities."

Outlook

With a strong start and plans for expansion through new subsidiaries, Prozone Realty appears well-positioned for growth. The company's focus on both leasing and outright sales segments, coupled with its strategic initiatives, suggests a positive outlook for the future.

Investors and stakeholders will be watching closely to see how these new subsidiaries contribute to the company's overall performance and whether the positive momentum in financial results can be sustained.