EL Forge Limited, a prominent player in the forging industry, has officially submitted an application to BSE Limited (Bombay Stock Exchange) on March 21, 2025, seeking approval for the re-classification of Mr. V Balu and Ms. Rohini Ramaswamy from the ‘Promoter Group’ category to the ‘Public’ category. This move is in line with Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background of the Re-classification

This re-classification application follows the company's prior intimations on March 10, 2025, and March 19, 2025, where the company had informed BSE and other stakeholders about the intention to reclassify the above-mentioned individuals. As per the SEBI norms, the company is required to obtain a No Objection/Approval from the stock exchange for re-classification of promoters to public shareholders.

Reason for the Re-classification

The decision to seek re-classification is likely driven by changes in ownership structure, reduced participation in decision-making, or dilution of controlling interest by the said individuals. As per Regulation 31A of the SEBI LODR Regulations, promoters or members of the promoter group can request re-classification to public shareholders if they meet the criteria specified by SEBI.

Details of Individuals Under Re-classification

1. Mr. V Balu – Previously categorized as part of the Promoter Group.
2. Ms. Rohini Ramaswamy – Another individual from the Promoter Group.

Both individuals have been identified for re-classification as they no longer exercise control over the company’s affairs, and their current shareholding does not give them controlling rights.

Regulatory Framework: Regulation 31A of SEBI LODR

Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 governs the conditions under which promoters can be re-classified to the public category. Key provisions include:

• Submission of a formal request to the stock exchange for re-classification.
• Approval from the Board of Directors followed by an application to the stock exchange.
• Verification by the stock exchange before granting the final approval.

In accordance with these norms, EL Forge Limited has complied with the necessary procedural requirements before submitting the application for approval.

Timeline of Events Leading to Re-classification

• March 10, 2025: Initial intimation to BSE regarding the proposed re-classification.
• March 19, 2025: Follow-up communication with the stock exchange on the re-classification process.
• March 21, 2025: Submission of the formal application with BSE seeking No Objection/Approval for the re-classification.

Next Steps Post Submission

Following the submission of the application, BSE will conduct a thorough review of the request, which includes verifying compliance with regulatory guidelines and ensuring that the concerned individuals satisfy all the necessary conditions. Upon completion of this review, BSE may grant a No Objection Certificate (NOC) or Approval for the re-classification.

Impact of Re-classification on Shareholding Pattern

The approval of this re-classification is expected to alter the shareholding pattern of EL Forge Limited. Once the re-classification is approved, the shareholding of Mr. V Balu and Ms. Rohini Ramaswamy will be treated as part of the public category rather than the promoter group, potentially increasing the public float of the company's shares.

Implications for the Company

The re-classification may have the following implications:

• Enhanced Liquidity: An increase in the public shareholding could improve liquidity and trading volumes.
• Compliance with SEBI Norms: Ensures continued compliance with minimum public shareholding (MPS) norms set by SEBI.
• Change in Governance Dynamics: Potential changes in voting rights and governance control.

Conclusion

The re-classification of Mr. V Balu and Ms. Rohini Ramaswamy from the Promoter Group to Public category is a significant development for EL Forge Limited. The application submission on March 21, 2025, marks a crucial step in this process, and the company's shareholders and market participants will now await BSE’s decision regarding this re-classification. The decision is expected to have a positive impact on the company’s compliance framework and governance structure, aligning it with evolving regulatory norms.

Disclaimer:
This disclosure is based on the information provided by EL Forge Limited to BSE Limited and is subject to regulatory approval. Investors and stakeholders are advised to keep track of further updates on this matter.

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