Kala Diwanji Divests 2.2361% Stake in Nidhi Granites Ltd

Kala Diwanji, a non-promoter shareholder in Nidhi Granites Limited, has sold 1,78,888 equity shares, representing 2.2361% of the company's total voting capital. The transactions were executed in the open market on the Bombay Stock Exchange (BSE) across multiple dates, commencing on April 11, 2025, and concluding on June 16, 2025. Following this series of sales, Kala Diwanji's shareholding in Nidhi Granites Limited has decreased from 13.50% to 11.2639%, as per a regulatory filing dated June 16, 2025.

Detailed Analysis of the Transaction

The recent share sale by Kala Diwanji in Nidhi Granites Limited involved the offloading of a substantial block of 1,78,888 equity shares. This quantum of shares represents 2.2361% of Nidhi Granites Limited's total issued and paid-up equity share capital, which stands at 8 crore shares. The disclosure confirms that these shares carried voting rights and the sale was executed through the open market mechanism on the BSE. The transactions were not a single event but occurred over a period spanning from mid-April 2025 to mid-June 2025. The specific dates of sale reported are April 11, 2025, followed by a series of transactions on June 5, June 6, June 9, June 10, June 13, and finally June 16, 2025. This phased selling approach can sometimes be adopted to mitigate significant price impacts on the stock, especially if the traded volume is considerable relative to the stock's average liquidity. Prior to this divestment, Kala Diwanji held 10,80,000 shares, amounting to a significant 13.50% stake in Nidhi Granites Limited. After the sale of 1,78,888 shares, her holding has reduced to 9,01,112 shares. This revised holding now constitutes 11.2639% of the company's total voting capital. The filing explicitly states that Kala Diwanji does not belong to the Promoter or Promoter Group of Nidhi Granites Limited, classifying her as a public shareholder. It is also noteworthy that the disclosure indicates that neither before nor after this specific sale transaction did Kala Diwanji hold any shares in the nature of encumbrance (such as pledge, lien, or non-disposal undertakings). Furthermore, she did not hold any voting rights (VR) otherwise than by shares, or any warrants, convertible securities, or any other instrument that would entitle her to receive shares carrying voting rights in Nidhi Granites Limited. This clarifies that her reported shareholding represents her direct, unencumbered equity position. The total equity share capital and the total voting capital of Nidhi Granites Limited remained unchanged at 8 crore shares before and after this transaction. The total diluted share/voting capital of the company also stood at 8 crore shares, indicating no immediate impact from outstanding convertible instruments on the overall share base considered for these percentage calculations.

Additional Context: Regulatory Framework

This disclosure was made under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. These regulations, commonly known as the Takeover Code, are administered by the Securities and Exchange Board of India (SEBI) and are designed to ensure fair and transparent dealings in the securities market, particularly concerning changes in corporate control and substantial shareholding. Regulation 29(2) mandates that any person, who together with persons acting in concert (PACs), holds shares carrying 5% or more of the voting rights in a target company, must disclose every acquisition or disposal of shares representing 2% or more of the voting rights in that company. In this case, Kala Diwanji, already holding more than 5%, sold shares amounting to 2.2361%, thereby triggering the disclosure requirement. The disclosure must be made to the concerned stock exchanges where the company's shares are listed (BSE in this instance) and to the target company itself within two working days of the transaction. The purpose of such regulations is to keep the market informed about significant changes in the ownership structure of listed companies. This transparency allows existing shareholders, potential investors, and the market at large to be aware of shifts in substantial shareholdings, which could have implications for the company's governance or strategic direction. The information provided in these disclosures, such as the identity of the acquirer/seller, the number of shares transacted, and the resulting shareholding, is crucial for maintaining market integrity.

Market Impact and Significance

The disclosure of share sales by significant shareholders like Kala Diwanji is a key component of market transparency. While the filing itself does not detail the reasons behind the sale, it provides factual information about the change in shareholding. Such transactions by non-promoter shareholders holding substantial stakes are closely watched by the investment community. The immediate impact of such a sale on the stock price of Nidhi Granites Limited can vary based on numerous factors, including the market's interpretation of the sale, the overall market sentiment, the company's financial health and prospects, and the liquidity of the stock. A phased sale, as seen in this instance, might be structured to minimize abrupt price volatility. For investors and market analysts, these disclosures offer valuable data points. They contribute to a better understanding of shareholder activity and can be one of many factors considered when making investment decisions or assessing a company's stock. The SEBI regulations ensure that such material information is disseminated promptly, enabling all market participants to operate with a more complete picture of shareholding dynamics within listed entities. The filing, signed by Kala Diwanji and originating from Mumbai, fulfills this regulatory obligation, contributing to an informed and orderly market for Nidhi Granites Limited's shares.