DIGJAMLMTDNSEDigjam LimitedMediumNeutral
Announced Mon, 30 Jun · 14:01 IST

Digjam Limited has informed the Exchange regarding Change in Director(s) of the company.

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's Board approved three key items on June 29, 2025. First, Mr. Parashiva Murthy B S resigned as Director, citing personal reasons and professional commitments, with no material reasons stated. Second, Mr. Ruchit Bharat Patel (DIN: 00603359) was appointed as an Additional Non-Executive, Non-Independent Director; he shares the 'Bharat Patel' father name with existing Whole-time Director Hardik Bharat Patel, suggesting a family connection. Third, the Board 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 has a turnover of Rs 48,881.12 lakhs, which is 2,686% of Digjam's current turnover, meaning Digjam is absorbing a much larger business. Shareholders of RTIL will receive 46,481 Digjam equity shares for every 100 RTIL shares held, leading to the issuance of about 7.13 crore new shares.

Likely market impact

The director change is routine, but the addition of Ruchit Bharat Patel likely strengthens promoter-family influence on the board. The demerger is a transformative event for shareholders — Digjam will become significantly larger by absorbing RTIL's textile business, though existing shareholders will see their stake diluted from 25% to 25.03% of an expanded share base (promoter holding moves from 75% to 74.97%). The scheme still requires NCLT, SEBI, and shareholder approvals before completion.