DIGJAMLMTDNSEDigjam LimitedMediumNeutral
Announced Tue, 1 Jul · 19:11 IST

Digjam Limited has informed revised details to the Exchange about change in Management

Promoter Family Board EntryManagement Changes View source PDF

DIGJAMLMTD · price

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Digjam Limited informed the exchanges about changes approved at its June 29, 2025 board meeting. Mr. Parashiva Murthy B S resigned as Director citing personal reasons, and Mr. Ruchit Bharat Patel was appointed as an Additional Non-Executive, Non-Independent Director. Notably, Mr. Ruchit Patel is the brother of Mr. Hardik Bharat Patel, the existing Whole-time Director, indicating promoter family consolidation on the board. The Board also approved a Scheme of Arrangement to demerge the textile business of Reid & Taylor International Private Limited (RTIL) into Digjam, with an appointed date of July 1, 2025. The demerged undertaking had a turnover of INR 48,881.12 lakhs for FY25, which is about 2,686% of Digjam's total turnover — a massive scale-up. Under the scheme, 7,13,01,854 new equity shares will be issued at a swap ratio of 46,481 Digjam shares for every 100 RTIL shares. Promoter holding will marginally dilute from 75% to 74.97%, with public holding going from 25% to 25.03%.

Likely market impact

This is a transformative event for shareholders — the demerger will dramatically expand Digjam's scale by absorbing a textile business over 26 times its current turnover, but it remains subject to NCLT, SEBI, stock exchange, shareholder, and creditor approvals. The appointment of a family member of an existing Whole-time Director strengthens promoter influence on the board, which investors may scrutinise from a governance standpoint.