Shanthi Gears Limited , a prominent player in the engineering sector, has received a significant request that could alter its shareholder structure. The company announced that Coromandel Engineering Company Limited, currently classified under the 'promoter and promoter group' category, has sought reclassification to the 'public' category of shareholders.

Reclassification Request Details

According to the company's filing with the stock exchanges, Coromandel Engineering Company Limited submitted a formal request on September 24, seeking reclassification under Regulation 31A of the SEBI Listing Regulations. This move comes at a time when Coromandel Engineering holds no equity shares in Shanthi Gears, as per the latest available information.

Approval Process

The reclassification request is subject to a multi-step approval process, which includes:

1. Approval from Shanthi Gears' Board of Directors
2. Consent from the National Stock Exchange of India Limited (NSE)
3. Approval from BSE Limited (formerly known as Bombay Stock Exchange)

Implications and Next Steps

This development could potentially impact the company's shareholding pattern and governance structure. Shanthi Gears will need to navigate the regulatory requirements carefully to ensure compliance with SEBI regulations throughout the reclassification process.

Trading Window Closure

In a separate but related development, Shanthi Gears has also announced the closure of its trading window for insiders. The company informed the stock exchanges that:

• The trading window for dealing in the company's securities will be closed from October 1.
• This closure applies to the company's directors and other designated persons, including their immediate relatives.
• The window will remain closed until 48 hours after the declaration of Unaudited Standalone Financial Results for the quarter and half year ending September 30.

This trading window closure is in line with the company's Code of Conduct to Regulate, Monitor and Report Trading by Designated Persons and their Immediate Relatives, as well as the Code of Practices and Procedures for Fair Disclosure.

Investors and market participants will be keenly watching for further updates on both the reclassification request and the upcoming financial results announcement.

Shanthi Gears Limited , a prominent player in the industrial gear manufacturing sector, has recently made two significant announcements that have caught the attention of investors and market watchers.

Promoter Group Reclassification Request

Shanthi Gears Limited has received a formal request from Yanmar Coromandel Agrisolutions Private Limited, a member of its promoter and promoter group, seeking reclassification from the 'promoter and promoter group' category to the 'public' category. This request was made through a letter dated September 16 and received by the company on September 17.

According to the company's filing with the stock exchanges, Yanmar Coromandel Agrisolutions Private Limited currently holds no equity shares in Shanthi Gears Limited. The reclassification process, as per SEBI regulations, will require approvals from multiple entities:

1. Shanthi Gears Limited's Board of Directors
2. National Stock Exchange of India Limited (NSE)
3. BSE Limited

This move could potentially alter the company's shareholding structure and may have implications for its governance and decision-making processes.

Credit Rating Reaffirmation

In a separate development, Shanthi Gears has also announced that ICRA Limited, a prominent credit rating agency, has reaffirmed the company's credit ratings. The ratings are as follows:

These ratings apply to Shanthi Gears' cash credit, interchangeable, bank fund-based, and non-fund based limits. The reaffirmation of these high credit ratings suggests that ICRA continues to have a positive outlook on Shanthi Gears' financial stability and creditworthiness.

The [ICRA]AA rating indicates high credit quality with low credit risk, while the [ICRA]A1+ rating denotes the highest level of safety in the short term.

These developments, particularly the promoter group reclassification request, may be of interest to shareholders and potential investors as they could impact the company's ownership structure and market perception. Stakeholders are advised to keep an eye on further announcements regarding the approval process for the reclassification request.