DSP Trustee Private Limited, acting on behalf of various schemes of DSP Mutual Fund, DSP Alternative Investment Fund, and DSP Global Funds ICAV, has reduced its stake in KNR Constructions Limited. The entities collectively sold 8.36 lakh equity shares of KNR Constructions on June 10, 2025, through open market transactions. Following this sale, their combined shareholding in the company has decreased from 3.20% to 2.90% of the total share/voting capital.
| Particulars | Number of Shares | % w.r.t. Total Share/Voting Capital (*) | % w.r.t. Total Diluted Share/Voting Capital (**) |
|---|---|---|---|
| Holding before sale (along with PACs) as of June 10, 2025 | 89,86,956 | 3.20% | 3.20% |
| Shares sold on June 10, 2025 | (8,35,768) | (0.30%) | (0.30%) |
| Holding after sale (along with PACs) as of June 10, 2025 | 81,51,188 | 2.90% | 2.90% |
(**) Diluted share/voting capital means the total number of shares in KNR Constructions Ltd. assuming full conversion of outstanding convertible securities/warrants into equity shares.
Detailed Analysis of the Transaction
The disclosure, dated June 12, 2025, was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The sellers involved are DSP Trustee Private Limited, acting for schemes of DSP Mutual Fund (DSPMF) and DSP Alternative Investment Fund (DSPAIF), and DSP Global Funds ICAV, which is managed by DSP Asset Managers Private Limited. These entities are collectively considered Persons Acting in Concert (PACs).
The specific schemes of DSP Mutual Fund that participated in the sale include:
- DSP ELSS Tax Saver Fund
- DSP India T.I.G.E.R Fund
- DSP Large & Mid Cap Fund
- DSP Nifty Smallcap250 Quality 50 Index Fund
- DSP Small Cap Fund
The sale of 8,35,768 shares represents 0.30% of KNR Constructions' total share capital and 0.30% of its total diluted share/voting capital. This transaction has brought down the collective holding of the DSP entities from 89,86,956 shares (3.20%) to 81,51,188 shares (2.90%). The shares were sold via open market transactions.
KNR Constructions Limited's shares are listed on both BSE Limited and the National Stock Exchange of India Limited. The total equity share capital of KNR Constructions Limited, before and after this transaction, remained at 28,12,34,600 shares, corresponding to a paid-up capital of ₹56,24,69,200.
Regulatory Context and Disclosure Trigger
The disclosure falls under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. This regulation mandates disclosure if there is any change in shareholding (either increase or decrease) that, taken together with any previous change, results in the shareholding crossing a threshold of 2% of the total shareholding or voting rights in the target company, compared to the last disclosure made under sub-regulation (1) or sub-regulation (2) of Regulation 29.
DSP Trustee Private Limited had previously, vide a letter dated April 25, 2017, reported an increase in its holding across various DSPMF schemes beyond 5% of the paid-up capital of KNR Constructions Limited. This earlier disclosure was made under Regulation 29(1) of the SEBI SAST Regulations.
The current disclosure was necessitated because the cumulative change in shareholding since the last report has resulted in a decrease exceeding two per cent of the total shareholding. While the immediate transaction on June 10, 2025, led to a 0.30% decrease, the overall holding has now fallen to 2.90%, indicating a larger reduction from a previously higher reported level subsequent to the 5% acquisition disclosure.
About the Entities
KNR Constructions Limited (TC): KNR Constructions is an infrastructure project development company providing engineering, procurement, and construction (EPC) services across various fast-growing sectors, including roads & highways, irrigation, and urban water infrastructure management.DSP Entities (Seller/Discloser):
- DSP Trustee Private Limited: Acts as the trustee for schemes of DSP Mutual Fund and DSP Alternative Investment Fund.
- DSP Mutual Fund: One of India's prominent mutual fund houses, offering a range of investment schemes.
- DSP Alternative Investment Fund: Provides alternative investment options.
- DSP Global Funds ICAV: An Irish Collective Asset-management Vehicle, managed by DSP Asset Managers Private Limited.
- DSP Asset Managers Private Limited: The investment manager for DSP Mutual Fund, DSP Alternative Investment Fund, and DSP Global Funds ICAV.
These entities, due to their relationship and common management in the context of these investments, are considered Persons Acting in Concert (PAC) under the SEBI regulations.
Significance of Shareholding Changes
Changes in shareholding by institutional investors like mutual funds are common and can occur for various reasons, including portfolio rebalancing, profit booking, changes in investment strategy, or response to the investee company's performance and prospects. Such disclosures provide transparency to the market and other investors regarding significant shifts in ownership of listed companies.
The SEBI SAST Regulations are designed to ensure that acquisitions and disposals of shares that affect control or significant shareholding percentages in listed companies are conducted in a fair and transparent manner, allowing public shareholders to be aware of such changes. The reduction in stake by DSP entities in KNR Constructions will be noted by the market, though the specific reasons for the sale by the fund manager are part of their internal investment decision-making process.
The information provided is based on the disclosure filed with the stock exchanges on June 12, 2025, concerning the transaction dated June 10, 2025.
