On 28th April 2025, Popular Estate Management Limited, a BSE-listed real estate company based in Ahmedabad, submitted a formal disclosure to the stock exchange confirming that it does not fall within the “Large Corporate” category as defined under SEBI’s circular dated November 26, 2018.

The disclosure was addressed to BSE Limited, with reference to the SEBI notification titled SEBI/HO/DDHS/CIR/P/2018/144, which lays down a framework for fund-raising by large corporates through debt securities. As per the framework, companies that meet specific net worth and borrowing criteria are classified as “Large Corporates” and are subject to additional disclosure requirements and fundraising mandates via debt markets.

In this case, Popular Estate Management Limited has explicitly stated that as per the criteria outlined in the SEBI circular, it does not qualify as a Large Corporate. The key figures and declarations provided in the company's Annexure A (Initial Disclosure) are as follows:

Key Disclosures:

1. Company Name: Popular Estate Management Limited

2. CIN: L65910GJ1994PLC0023287

3. Outstanding Borrowings (as on March 31, 2025): ₹8.01 Crore (unsecured loan)

4. Highest Credit Rating in the Previous Financial Year: Not Applicable

5. Stock Exchange for Penalty (if applicable): BSE

As part of the filing, Kapila Shardul Tikke, the Company Secretary & Compliance Officer, and Vikram Patel, Chief Financial Officer, have jointly signed and affirmed the declaration that the company does not fall under the Large Corporate classification.

Understanding the SEBI Circular on Large Corporates:

The SEBI circular dated November 26, 2018, was aimed at encouraging large corporates to raise a portion of their financing needs from the debt market, specifically through listed debt securities. Under this framework, a company is classified as a Large Corporate if:

• It has an outstanding long-term borrowing of ₹100 crore or more, and

• It has a credit rating of “AA and above”, and

• Its shares are listed on a recognised stock exchange in India.

Any listed entity meeting all the above conditions is required to:

• Disclose itself as a “Large Corporate” in annual filings,

• Maintain a minimum of 25% of incremental borrowings via the debt market, and

• Submit both initial and annual disclosures.

In the case of Popular Estate Management Limited, the total borrowing stands at ₹8.01 crore, which is well below the ₹100 crore threshold. Furthermore, the company has declared that it does not possess any credit rating, thus making it further ineligible under the "Large Corporate" criteria.

Company Profile – Popular Estate Management Limited:

Popular Estate Management Limited, incorporated in 1994, is engaged in the business of real estate services, with its registered office located in Ahmedabad, Gujarat. The company is listed on the Bombay Stock Exchange (BSE) under Security Code: 531870 and Security ID: POPULARES.

With a relatively modest borrowing level and no credit rating in place, the company remains outside the ambit of SEBI’s special obligations for large corporates. The disclosure ensures transparency and regulatory compliance, helping investors and stakeholders remain informed of the company’s financial positioning.

Significance of this Disclosure:

For shareholders and analysts, this disclosure serves as an important indicator of the company’s borrowing structure and risk exposure. It confirms that Popular Estate Management is not under any mandatory requirement to raise debt through capital markets, which also suggests limited financial liabilities compared to larger peers in the industry.

In a climate where SEBI is pushing for more regulated debt fundraising, smaller companies like Popular Estate that don’t fall under such obligations are relieved from stringent norms such as credit ratings, debt issuance, and ongoing tracking requirements.

Furthermore, this disclosure upholds corporate governance norms, ensuring that the company is transparent in stating its financial standing and compliance with SEBI’s circular.

Conclusion:

Popular Estate Management Limited’s statement of non-applicability under the SEBI’s Large Corporate framework highlights the company’s current financial positioning, with borrowings well below the threshold that mandates enhanced debt disclosure and fundraising through listed debt securities.

Such timely declarations are essential for maintaining market confidence and ensure the regulatory ecosystem remains updated about the borrowing profiles of all listed entities. In the case of Popular Estate, it reflects a relatively low-leverage structure, which may be considered financially conservative, albeit without a formal credit rating.

Investors and stakeholders should continue monitoring such annual disclosures to track any future transition in the company’s financial standing that might change its classification under regulatory norms.

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