Nimesh S Joshi has acquired a substantial 22.07% stake in Dugar Housing Developments Limited through a preferential allotment of 15,45,000 equity shares. This strategic acquisition, which positions Joshi as a significant shareholder, took place on June 12, 2025. The formal disclosure regarding this transaction was made to the Bombay Stock Exchange (BSE) on June 16, 2025, in compliance with SEBI regulations.
| Particulars | Details |
|---|---|
| Name of Acquirer | Nimesh S Joshi |
| Name of Target Company (TC) | Dugar Housing Developments Limited |
| TC Scrip Code | 511634 (Listed on BSE Limited) |
| Acquirer's Promoter Group Status | No |
| Date of Disclosure to Stock Exchange | June 16, 2025 |
| Date of Acquisition of Shares | June 12, 2025 |
| Mode of Acquisition | Preferential Allotment |
| Number of Equity Shares Acquired | 15,45,000 |
| Acquirer's Holding Before Acquisition | Nil shares (0%) |
| Acquirer's Holding After Acquisition (Number of Shares) | 15,45,000 |
| Acquirer's Holding After Acquisition (% of Total Share Capital*) | 22.07% |
| Acquirer's Holding After Acquisition (% of Diluted Share Capital**) | 15.93% |
(**) Diluted share/voting capital means the total number of shares in the TC assuming full conversion of the outstanding convertible securities/warrants into equity shares of the TC.
Detailed Analysis of the Transaction
The acquisition by Nimesh S Joshi, who is identified as a non-promoter entity, marks a significant development for Dugar Housing Developments Limited. The transaction was structured as a preferential allotment, a method companies often use to raise capital from a select group of investors by issuing fresh equity. This route allows for a relatively faster infusion of funds compared to public offerings.
The acquisition of 15,45,000 shares grants Nimesh S Joshi a considerable holding in the company. Specifically, this translates to 22.07% of the total share/voting capital and 15.93% of the total diluted share/voting capital of Dugar Housing Developments Limited. Prior to this transaction, Nimesh S Joshi held no shares in the company, making this a fresh and substantial entry.
Impact on Shareholding and Capital Structure
This preferential allotment has significantly altered the shareholding pattern and the capital base of Dugar Housing Developments Limited. With Nimesh S Joshi now holding a notable stake, the dynamics within the company's shareholder structure are set to change.
The infusion of capital through this allotment has led to an expansion of Dugar Housing's equity share capital. The details of the change in capital structure are as follows:
- Equity Share Capital Before Acquisition: The company's equity share capital stood at ₹30,00,000 (₹30 lakh), divided into 3,00,000 equity shares with a face value of ₹10 each.
- Equity Share Capital After Acquisition (Total Voting Capital): Post-allotment, the equity share capital (representing the total voting capital) has increased to ₹7,00,00,000 (₹7 crore), comprising 70,00,000 equity shares of ₹10 each.
- Total Diluted Share/Voting Capital After Acquisition: The total diluted share/voting capital of Dugar Housing after this transaction is reported as ₹9,70,00,000 (₹9.7 crore), which corresponds to 97,00,000 equity shares of ₹10 each. This figure accounts for the potential conversion of all outstanding convertible instruments into equity, offering a forward-looking view of the maximum possible equity base.
Nature of Acquired Securities
The 15,45,000 equity shares acquired by Nimesh S Joshi are newly issued shares resulting from the preferential allotment. According to the disclosure, these shares will rank pari-passu with the existing equity shares of Dugar Housing Developments Limited. This means the new shares will have equal rights in all respects, including entitlement to dividends and other corporate benefits, ensuring they are on the same footing as all other outstanding equity shares of the company.
Regulatory Compliance and Disclosure
The transaction and its subsequent disclosure adhere to the regulatory framework established by the Securities and Exchange Board of India (SEBI). The announcement was formally submitted to The Department of Corporate Services of the Bombay Stock Exchange Limited, where Dugar Housing Developments Limited's shares are listed under the Scrip Code 511634.
This disclosure is mandated under Regulation 29(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. These regulations are designed to ensure transparency in the market by requiring timely public announcements when an individual or entity acquires shares or voting rights beyond specified thresholds in a listed company. This helps maintain market integrity and keeps investors informed about significant changes in company ownership.
Additional Context and Implications
A preferential allotment, such as the one undertaken by Dugar Housing, serves as a mechanism for companies to raise capital from a chosen set of investors. This can be for various strategic purposes, including funding expansion projects, strengthening the balance sheet by reducing debt, or meeting working capital needs. While the specific end-use of the funds raised in this instance was not detailed in the disclosure, such capital infusion generally aims to bolster the company's financial position and support its growth objectives.
For Nimesh S Joshi, this acquisition represents a significant investment, establishing a strong foothold in Dugar Housing Developments Limited. As a non-promoter shareholder with a stake exceeding 22% of the total voting capital, Joshi could potentially influence the company's strategic direction, although further details on any board representation or specific shareholder agreements were not part of this disclosure.
The market typically views such substantial acquisitions with interest. The entry of a new, significant shareholder can signal confidence in the company's prospects or a potential shift in strategy. While the preferential allotment leads to an increase in the equity base and thus an equity dilution for existing shareholders on a per-share basis, the long-term impact will depend on how effectively the newly raised capital is deployed to create value for the company and its stakeholders. This disclosure ensures that all market participants are promptly informed of this key development in Dugar Housing's ownership structure.
