DIGJAM LIMITED - Revised Outcome of Board meeting held on Jun 29, 2025.
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On the reaction day the stock moved 5.1 pts more than Nifty Microcap 250 and 5.1 pts more than its Other Textile Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Digjam's board approved a Scheme of Arrangement to demerge the textile business of group company Reid & Taylor International Pvt Ltd (RTIL) into Digjam, with an appointed date of July 1, 2025. The share exchange ratio is 46,481 Digjam equity shares (face value INR 10) for every 100 RTIL equity shares, resulting in the issuance of about 7.13 crore new Digjam shares, all non-cash. The demerged textile business had a turnover of about INR 488.81 crore for FY25, which is around 26.86 times Digjam's own turnover, meaning Digjam is absorbing a business many times its current size. Both entities belong to the Finquest Group, and the rationale is consolidation of textile operations under one listed entity to gain scale and synergies. Post-scheme promoter holding will be roughly 74.97% (vs 75% currently). The board also accepted the resignation of Director Mr. Parashiva Murthy (personal reasons) and appointed Mr. Ruchit Bharat Patel, brother of Executive Director Hardik Bharat Patel, as an Additional Non-Executive Director. The scheme now needs stock exchange, SEBI, shareholder, creditor, and NCLT approvals.
This is a transformative deal for Digjam — the company is absorbing a textile business roughly 27x its own turnover, which could significantly change its scale, revenue base, and risk profile. Existing shareholders will see meaningful dilution (issued shares rise from 2 crore to about 9.13 crore), though promoter control stays largely intact. The stock may react to the sheer change in business size; final outcomes depend on NCLT and regulatory approvals.