Citurgia Biochemicals Limited, a Mumbai-based listed company, has taken a significant step in its corporate governance journey by moving forward with the reclassification of certain shareholders from the "Promoter & Promoter Group" category to the "Public" category under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, commonly known as LODR.

Board Approval Post SAT Direction

The Board of Directors of Citurgia Biochemicals, in its meeting held on 28th April 2025, resolved to continue with the previously submitted application for reclassification. This decision follows an order issued by the Hon’ble Securities Appellate Tribunal (SAT) on 16th April 2025, which presumably directed or cleared the path for such a reclassification request. The matter, originally initiated in June 2022, had been pending regulatory direction and clarity until this recent judicial pronouncement.

Background of the Reclassification Process

The reclassification from promoter to public category under SEBI Regulation 31A is a well-laid-out process that allows companies to request that certain shareholders, originally part of the promoter/promoter group, be considered as public shareholders. The regulation ensures that such transitions are transparent, well-documented, and in line with investor interests.

Citurgia Biochemicals had submitted its application to the stock exchange on 20th June 2022, requesting approval for this change. However, regulatory hurdles and other approvals delayed the process. Now, following the SAT’s decision, the Board has reaffirmed its intent and is resuming the formal reclassification efforts.

Pending Regulatory Approvals

While the Board has approved the continuation of this application, the reclassification is still subject to approval by BSE Limited (the designated stock exchange) and other relevant regulatory bodies. Once approved, this move will officially shift the designated individuals or entities from the promoter and promoter group category to public shareholding, thereby impacting the company’s overall ownership and classification of shareholders.

Such transitions are not uncommon in India’s evolving corporate ecosystem. They are often undertaken:

• To meet minimum public shareholding norms

• To reflect true ownership status

• To align with changes in management or business strategy

• Or as part of succession planning or restructuring

Company Profile

Citurgia Biochemicals Limited (CIN: L24100MH1974PLC017773) operates from its registered office in Goregaon East, Mumbai. The company is listed on BSE Limited under the Scrip Code 506373, and its current operations are related to chemical manufacturing and biochemical processing, as inferred from its name and business history.

Over the years, Citurgia has maintained a quiet profile on the stock exchange, but this recent development puts the spotlight back on its corporate structure and shareholder classification, a topic of increasing scrutiny from both regulators and public investors.

Importance of Reclassification in Today’s Market Context

In today’s market scenario, corporate transparency and compliance are vital to maintaining investor confidence and regulatory alignment. The reclassification of promoter holdings is not merely a procedural step—it often signifies shifts in control, influence, or strategic direction within a company.

By moving certain shareholders to the public category, companies signal:

• A reduction in promoter influence

• Increased liquidity in shareholding

• Potential institutional or retail investor confidence

• A cleaner governance structure

What Happens Next?

Pending the necessary approvals, the outcome of this reclassification will be formally reflected in the shareholding pattern of the company and submitted to the stock exchange for public disclosure. The Registrar of Companies and SEBI will also be notified as per standard procedures.

Stakeholders, especially public shareholders and market analysts, will be keenly watching for:

• Final BSE approval status

• Changes in the company’s shareholding pattern in the upcoming quarterly disclosures

• Any impact on stock performance or investor sentiment

It’s important for investors to note that this move does not dilute promoter shareholding per se, but changes its classification, which may impact how voting rights and corporate influence are interpreted.

In conclusion, Citurgia Biochemicals Limited's decision to continue with the promoter reclassification process reflects a step toward regulatory compliance and enhanced corporate transparency, in line with SEBI’s efforts to streamline governance practices across listed companies. Investors should stay tuned for updates on the final approvals and subsequent implications on the company’s shareholder structure.

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