Nature of Disclosure: Regulatory filing to BSE Limited regarding an inter-se transfer of shares within the promoter group of Covance Softsol Limited by way of gift, exempt from open offer requirements under SEBI Takeover Regulations.
Key Transaction Details:
- Acquirer: Mr. Sambasiva Rao Madala (Member of Promoter Group)
- Transferor/Seller: Mrs. Durga V L K Madala (Promoter of the Company)
- Relationship: Acquirer is the father-in-law (father of the spouse) of the transferor, qualifying as 'immediate relatives' as defined in Regulation 2(1) of SEBI SAST Regulations, 2011.
- Number of Shares Transferred: 46,24,704 equity shares
- Percentage of Paid-up Capital: 20.88%
- Transaction Date: August 28, 2026
- Mode of Acquisition: Off-market transfer by way of gift
- Acquisition Price: Nil (no consideration)
- Regulatory Exemption: Reliance on exemption provided under Regulation 10(1)(a)(i) of SEBI SAST Regulations, 2011
Shareholding Changes - Pre and Post Transaction:
Promoter Group Collective Holding (Remained unchanged):
- Pre-Transaction: 1,58,79,710 shares (71.71% of total share capital)
- Post-Transaction: 1,58,79,710 shares (71.71% of total share capital)
Individual Holdings:
- Sambasiva Rao Madala: Increased from 1,77,600 shares (0.80%) to 48,02,304 shares (21.69%)
- Durga V L K Madala: Decreased from 1,43,36,112 shares (64.74%) to 97,11,408 shares (43.86%)
- Other promoter group members' holdings remained unchanged:
- M Bhaskara Rao: 11,26,144 shares (5.09%)
- M Sridevi: 69,532 shares (0.31%)
- Aravind Kumar Madala: 1,00,000 shares (0.45%)
- Madala Holdings Limited: 0 shares (0%)
- Madala Srinivasa Rao: 45,022 shares (0.20%)
- Raja Rao Boyapati: 25,300 shares (0.11%)
Regulatory Compliance Timeline:
1. Regulation 10(5) Prior Intimation: Filed with BSE on August 20, 2026 (4 working days before proposed acquisition date of August 27, 2026)
2. Transaction Execution: Completed on August 28, 2026
3. Regulation 10(6) Post-acquisition Report: Filed with BSE on August 31, 2026 (within 4 working days of acquisition)
4. Regulation 29(2) Disclosures: Received from both acquirer and transferor on August 31, 2026
5. Regulation 10(7) Report to SEBI: Submitted on September 9, 2026 along with requisite fees
Fee Payment to SEBI:
- Amount: ₹1,50,000 + GST @18% = Total ₹1,77,000
- Transaction Reference: XQZ82LJH7168
- Payment Date: September 9, 2026
- Payment Mode: NEFT through Axis Bank
- Status: Amount debited, processing confirmed
Company Capital Structure:
- Total Equity Share Capital: ₹22,14,55,330
- Total Number of Equity Shares: 2,21,45,533
- Face Value: ₹10 per share
Documentation Submitted:
The filing includes completed formats for:
- Regulation 10(7) Report to SEBI
- Regulation 10(5) Prior Intimation to BSE
- Regulation 10(6) Post-acquisition Report to BSE
- Regulation 29(2) Disclosures from both parties
- SEBI (Prohibition of Insider Trading) Regulations disclosures
- Payment receipt for SEBI fees
Certifications and Declarations:
- The acquirer declared compliance with all conditions specified under Regulation 10(1)(a)(i)
- Both parties confirmed compliance with Chapter V disclosure requirements of Takeover Regulations
- The transaction qualified for exemption from open offer requirements under Regulation 3(2)