Description

Notice for Offer for Sale of 7,38,711 equity shares (5% of capital) by promoter Madhav Jayesh Valia through Stock Exchange Mechanism to achieve minimum public shareholding requirements.

Summary

Promoter Shri Madhav Jayesh Valia proposes to sell up to 7,38,711 equity shares (face value Rs. 10 each) of East India Drums & Barrels Manufacturing Limited (BSE Scrip Code: 523874), representing 5% of total issued and paid-up equity share capital. The Offer for Sale (OFS) will be conducted through BSE’s Stock Exchange Mechanism on December 29, 2025 (T Day - non-retail investors only) and December 30, 2025 (T+1 Day - retail and non-retail investors). The primary objective is achieving minimum public shareholding as prescribed under Rule 9(2)(b) of Securities Contracts (Regulation) Rules, 1957 and Regulation 38 of SEBI LODR Regulations, 2015.

Key Points

  • Seller: Shri Madhav Jayesh Valia (Promoter)
  • Offer Size: 7,38,711 equity shares (5% of total capital)
  • Face Value: Rs. 10 per equity share
  • Company: East India Drums & Barrels Manufacturing Ltd (BSE Scrip Code: 523874)
  • ISIN: IN191C01023
  • Stock Exchange: BSE Limited
  • Clearing Corporation: Indian Clearing Corporation Limited
  • Regulatory Framework: SEBI OFS Circular SEBI/HO/MRD-PoD2/CIR/P/2024-00181 dated December 30, 2024
  • BSE Operational Guidelines: Notice 20240701-19 dated July 1, 2024

Regulatory Changes

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

  • SEBI Master Circular bearing no. SEBI/HO/CFD/PoD2/ dated November 1, 2024
  • Rule 9(2)(b) of Securities Contracts (Regulation) Rules, 1957
  • Regulation 38 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
  • OFS mechanism as per paragraph 19.1.5.2 of Chapter I of Master Circular for Stock Exchanges

Compliance Requirements

  • Seller’s Broker and prospective investors must read the Notice in entirety along with OFS Guidelines before participating
  • Separate bidding window to be provided by BSE for the Offer
  • Non-retail investors can bid on T Day and carry forward unallotted bids to T+1 Day
  • Retail investors can bid on T+1 Day only
  • Compliance with minimum public shareholding norms is the stated objective

Important Dates

  • Notice Date: December 26, 2025
  • T Day (December 29, 2025): Bidding for non-retail investors only
  • T+1 Day (December 30, 2025): Bidding for retail investors and non-retail investors (for carry-forward unallotted bids)

Impact Assessment

Market Impact: Medium - The sale of 5% equity stake will increase public float and improve liquidity in East India Drums & Barrels shares. The two-tier bidding structure allows price discovery across investor categories.

Regulatory Impact: Positive - Helps the company achieve minimum public shareholding compliance as mandated by SEBI, avoiding potential regulatory action or delisting risks.

Investor Impact: The OFS provides opportunity for retail and institutional investors to acquire shares through a transparent Stock Exchange Mechanism. Non-retail investors get first access on T Day with option to carry forward unallotted bids.

Promoter Impact: Reduces promoter holding while maintaining compliance with listing requirements. The structured mechanism ensures fair price discovery and orderly execution.

Impact Justification

Routine OFS for achieving minimum public shareholding compliance. Moderate size (5% of capital) with structured two-day bidding process for retail and non-retail investors.