Rama Mines (Mauritius) Limited, an entity belonging to the promoter group of Deccan Gold Mines Limited, has announced a reduction in its shareholding through a series of open market sales. The company disposed of 3,263,518 equity shares, constituting approximately 2.08% of Deccan Gold's total share capital. This activity, with the latest tranche of sales occurring on June 9, 2025, has brought Rama Mines' stake in the gold exploration company down from 16.10% to 14.02%. The formal disclosure was submitted to the Bombay Stock Exchange (BSE) on June 11, 2025, in compliance with the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011.
| Particulars | No. of Shares | % of Total Share/Voting Capital | % of Total Diluted Share/Voting Capital of TC(*) |
|---|---|---|---|
| Holding Before Disposal (on current capital base) | 25,270,229 | 16.10% | 16.03% |
| Shares Disposed | 3,263,518 | 2.08% | 2.07% |
| Holding After Disposal | 22,006,711 | 14.02% | 13.96% |
Detailed Analysis of the Transaction
The seller, Rama Mines (Mauritius) Limited, is identified as part of the promoter group of Deccan Gold Mines Limited. The disposal of shares was executed through open market transactions. According to the disclosure, these sales occurred on various dates, with the most recent sale of 141,743 shares taking place on June 9, 2025. This particular transaction was significant as it resulted in the cumulative change in shareholding by Rama Mines exceeding the regulatory threshold, thereby triggering the need for the current disclosure under SEBI's Takeover Regulations.
The shares of Deccan Gold Mines Limited are listed on the Bombay Stock Exchange (BSE), and the open market sale mechanism ensures that such transactions are conducted transparently, with prices determined by prevailing market dynamics. The choice of open market sales allows for a broad participation of buyers.
Impact on Shareholding Structure
The sale of 3,263,518 shares by Rama Mines (Mauritius) Limited represents a notable decrease in its investment in Deccan Gold Mines. Prior to this series of disposals, Rama Mines held 25,270,229 shares. Calculated against Deccan Gold's current paid-up equity capital of 156,921,058 shares (as of June 9, 2025), this holding constituted 16.10%.
Following these transactions, Rama Mines' equity stake in Deccan Gold Mines has been reduced to 22,006,711 shares. This revised holding now accounts for 14.02% of the total share capital and 13.96% of the total diluted share/voting capital of Deccan Gold Mines. The overall promoter group holding in Deccan Gold Mines will remain a key aspect for investors to consider, and this disclosure provides transparency regarding changes within that group.
Regulatory Compliance and Context
This disclosure has been made in accordance with Regulation 29(2) and 29(3) of the SEBI (Substantial Acquisition of Shares and Takeover) Regulations, 2011, often referred to as the SAST Regulations. These regulations are designed to ensure transparency and provide timely information to the market and investors regarding significant changes in shareholdings, especially by promoters and substantial shareholders. The primary objective is to maintain market integrity and enable informed investment decisions.
The trigger for this specific disclosure was that the cumulative disposals by Rama Mines resulted in a change in its shareholding that exceeded the 2% threshold stipulated by the SAST Regulations since its last relevant disclosure. Such intimations are crucial for all stakeholders to stay informed about shifts in ownership and control of listed companies.
Historical Perspective and Capital Adjustments
The filing references a previous disclosure made by Rama Mines (Mauritius) Limited under Regulation 29(2) of the SEBI Takeover Regulations on March 14, 2018. At that time, the paid-up capital of Deccan Gold Mines Limited was 92,924,925 shares. Rama Mines' holding of 25,270,229 shares then represented a significantly higher stake of 27.19%.
Since March 2018, Deccan Gold Mines Limited has seen an increase in its equity base due to the issuance of further shares. As detailed in the current filing, the paid-up capital of the Target Company stood at 156,921,058 shares as of June 9, 2025. Consequently, the same number of shares (25,270,229) held by Rama Mines before the recent series of disposals translated to a revised pre-disposal percentage of 16.10% against this expanded capital. This underscores the dynamic nature of percentage shareholdings, which are affected by changes in a company's total outstanding shares.
The total diluted share/voting capital of Deccan Gold Mines, which considers the potential conversion of all outstanding convertible securities or warrants into equity shares, was reported to be 157,613,822 shares after the completion of the reported sales.
Market Considerations
Transactions involving the sale of shares by promoter entities are typically scrutinized by the investment community. Such sales can occur for various reasons, including the promoter's need for liquidity, portfolio diversification, funding for other business ventures, or estate planning. While not inherently negative, substantial or frequent selling by promoters can sometimes raise questions among investors regarding their long-term outlook for the company.
The impact of such disclosures on market sentiment can vary. A modest reduction in stake, especially if well-explained or part of a disclosed long-term strategy, might have limited impact. However, the market generally prefers stability in promoter holdings. Investors will likely continue to monitor the shareholding patterns of Deccan Gold Mines and any further disclosures from its promoter group to gauge ongoing commitment and strategic direction. This disclosure provides a clear update on the current promoter holding by Rama Mines (Mauritius) Limited.
The intimation was signed by Charles E.E. Devenish, Director of Rama Mines (Mauritius) Limited, and also copied to Deccan Gold Mines Limited.
