Pudumjee Paper Products Ltd Subscribes Additional Shares in Saraswat Bank
Pudumjee Paper Products Ltd has approved the subscription of additional equity shares in Saraswat Co-operative Bank Limited (Saraswat Bank). The investment is linked to the Company’s ongoing banking engagement and existing credit facilities with the bank.The acquisition follows an offer made by Saraswat Bank to eligible member-borrowers, adhering to applicable share-linkage norms. Pudumjee Paper Products Ltd, which currently holds 2,500 equity shares of Saraswat Bank and has a credit exposure of approximately Rs. 89 Crores, is undertaking the subscription as part of its existing lender borrower relationship with the institution.
The subscription aims to strengthen the banking engagement between the two entities. The Company confirmed that the purchase does not constitute a strategic investment or an objective to acquire any ownership, management, or control in Saraswat Bank, and it will not result in any change in the bank’s governance or management structure. Furthermore, the acquisition upholds the ‘one member, one vote’ principle as mandated by the Multi-State Co-operative Societies Act, 2002.
Transaction Details
The subscription was conducted through a cash consideration and involves a significant increase in the Company's holdings of Saraswat Bank. The details of the transaction are as follows:| Particular | Detail |
|---|---|
| Shares Presently Held | 2,500 equity shares of Rs.10 each |
| Shares Proposed to be Subscribed | 22,14,900 equity shares of Rs.10 each |
| Total Shares After Subscription | 22,17,400 equity shares of Rs.10 each |
| Cost of Acquisition | Rs.2,21,49,000/- |
Saraswat Bank Profile
Saraswat Co-operative Bank Limited, which was incorporated in 1918, operates as a full suite banking and financial services provider, including retail, wholesale, and treasury operations. The bank is governed by the Banking Regulation Act, 1949, and the Multistate Co-operative Societies Act, 2002.Key capital structure details for Saraswat Bank, as reported during this process are provided below:
| Particular | Details |
|---|---|
| Authorised Share Capital | 100,00,00,000 Equity Shares of Rs.10/- each |
| Subscribed Share Capital | 32,01,75,196 Equity Shares of Rs.10/- each |
| Preference Share Capital | 61,59,400 Preference Shares of Rs.10/- each |
| Total Income Own Funds | Ranges between Rs.5,064.53 Crores and Rs.5,484.91 Crores |
The acquisition is expected to be completed in due course, pending the completion of necessary formalities.
PDMJEPAPER Stock Price Movement
Shares of Pudumjee Paper Products Limited slipped by 1.57% today, settling at ₹96.27 in post-market trading. The stock recorded a total traded volume of 367,445 shares during the session.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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