Description

Promoter Shri Madhav Jayesh Valia to sell 7,38,711 equity shares (5% of paid-up capital) through OFS mechanism on December 29-30, 2025 to achieve minimum public shareholding requirements.

Summary

Promoter Shri Madhav Jayesh Valia of East India Drums & Barrels Manufacturing Limited (BSE Scrip Code: 523874) has announced an Offer for Sale (OFS) of up to 7,38,711 equity shares of face value Rs. 10 each, representing 5% of the total issued and paid-up equity share capital. The OFS will be conducted through BSE’s stock exchange mechanism over two trading days: December 29, 2025 (T Day for non-Retail Investors only) and December 30, 2025 (T+1 Day for Retail Investors and non-Retail Investors with unallotted bids). The primary objective is to achieve minimum public shareholding requirements as mandated under Rule 9(2)(b) of SCRR 1957 and Regulation 38 of SEBI LODR 2015.

Key Points

  • Seller: Shri Madhav Jayesh Valia (Promoter)
  • Company: East India Drums & Barrels Manufacturing Ltd
  • BSE Scrip Code: 523874
  • ISIN: INE191C01023
  • Offer Size: Up to 7,38,711 equity shares (face value Rs. 10 each)
  • Percentage of Capital: 5% of total issued and paid-up equity share capital
  • Stock Exchange: BSE Limited
  • Clearing Corporation: Indian Clearing Corporation Limited (ICCL)
  • Trading Window: Separate OFS window on BSE
  • Regulatory Framework: SEBI OFS Circular SEBI/HO/MRD-PoD2/CIR/P/2024-00181 dated December 30, 2024 and BSE Notice 20240701-19 dated July 1, 2024

Regulatory Changes

No new regulatory changes introduced. This OFS is being conducted in compliance with existing regulations:

  • Rule 9(2)(b) of Securities Contracts (Regulation) Rules, 1957 (as amended)
  • Regulation 38 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended)
  • SEBI Master Circular SEBI/HO/CFD/PoD2/ dated November 11, 2024 prescribing permissible methods for achieving minimum public shareholding

Compliance Requirements

  • Seller’s Broker: Must execute the OFS transaction through BSE’s designated separate window
  • Bidders/Investors: Required to read the Notice in its entirety along with OFS Guidelines before participating
  • Stock Exchange (BSE): Designated exchange for order placement
  • Clearing: Indian Clearing Corporation Limited designated as clearing corporation
  • Notice Requirements: Issued per paragraph 19.1.5.2 of Chapter I of SEBI OFS Circular

Important Dates

  • December 26, 2025: Notice issued to BSE
  • December 29, 2025 (T Day): First day of OFS - Non-Retail Investors only
  • December 30, 2025 (T+1 Day): Second day of OFS - Retail Investors and non-Retail Investors with unallotted bids from T Day

Impact Assessment

Market Impact: The OFS will introduce 7,38,711 shares (5% of equity capital) into the public market, potentially increasing liquidity and public float. This is a regulatory compliance-driven sale rather than a distress sale, which should moderate negative sentiment.

Shareholding Impact: Post-OFS, the promoter’s shareholding will reduce by 5%, while public shareholding will increase correspondingly to meet minimum public shareholding norms.

Investor Categories: The two-day structure allows non-retail investors first access on T Day, with retail investors participating on T+1 Day along with non-retail investors carrying forward unallotted bids. This tiered approach balances institutional and retail participation.

Price Impact: OFS transactions typically occur at a discount to prevailing market prices to attract buyers. Short-term price pressure may exist, but the regulatory nature and limited size (5%) should limit sustained negative impact.

Compliance Achievement: The OFS represents a prescribed method for achieving minimum public shareholding requirements, demonstrating the company’s commitment to regulatory compliance and good corporate governance.

Impact Justification

Medium importance as this is a promoter OFS affecting 5% of company's equity to meet regulatory MPS requirements. Impact is moderate as it involves stock dilution but follows standard regulatory procedure.