Kay Power & Paper Limited Announces Share Transmission Under Approved Demerger Scheme

Kay Power & Paper Limited has announced the transmission of equity shares under an approved scheme of demerger, following regulatory approval from the Hon'ble Regional Director, Western Region, Ministry of Corporate Affairs, Mumbai. The disclosure was made pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Share Transmission Details Under the approved demerger scheme, 1,42,300 equity shares representing 0.40% of the company's paid-up equity share capital will be transmitted from the current holder to a new entity within the promoter group. Parameter Details Number of Shares 1,42,300 (One Lakh Forty-Two Thousand Three Hundred) Shareholding Percentage 0.40% Type of Transmission Non-market transmission Appointed Date April 1, 2025 Effective Date February 2, 2026 Shareholding Structure Changes The transmission involves a change in the identity of the shareholding entity within the promoter group, while maintaining the same shareholding percentage. Particulars Before Demerger After Demerger Name of Promoter Kay Chandra Iron Engineering Works Private Limited Kay Chandra Capital and Investment Private Limited No. of Equity Shares 1,42,300 1,42,300 % of Shareholding 0.40% 0.40% Corporate Structure Impact Following the completion of this transmission, Kay Chandra Capital and Investment Private Limited will become part of the promoter group of Kay Power and Paper Limited. The company has provided specific assurances regarding the impact of this corporate restructuring: The transmission constitutes a non-market transmission pursuant to the approved scheme of demerger No change in control or management of the company will occur The aggregate shareholding of the promoter and promoter group will remain unchanged Regulatory Compliance The demerger scheme received approval from the Regional Director, Western Region, Mumbai, and became operative from the appointed date of April 1, 2025. The effective date of the scheme is February 2, 2026. The company confirmed that apart from this specific transmission, there are no other changes in the promoters and promoter group structure. Kay Power & Paper Limited , a company in the paper manufacturing sector, has released its unaudited financial results for the second quarter and half-year ended September 30. The company reported a slight decrease in revenue and profit compared to the same period last year. Key Financial Highlights Particulars (in Rs. lacs) Q2 2025 Q2 2024 H1 2025 H1 2024 Revenue from Operations 762.57 879.78 1474.30 1893.48 Net Profit 1.96 2.91 3.17 7.24 Earnings Per Share (Rs.) 0.01 0.25 0.01 0.03 Revenue and Profitability For the quarter ended September 30, Kay Power & Paper Limited reported revenue from operations of Rs. 762.57 lacs, marking a 13.3% decrease from Rs. 879.78 lacs in the corresponding quarter of the previous year. The company's net profit for the quarter stood at Rs. 1.96 lacs, down from Rs. 2.91 lacs in Q2 of the previous year. The half-yearly results also reflected a similar trend. Revenue for H1 was Rs. 1474.30 lacs, compared to Rs. 1893.48 lacs in H1 of the previous year, representing a 22.1% decline. Net profit for the half-year period decreased to Rs. 3.17 lacs from Rs. 7.24 lacs in the previous year. Operational Performance The company's cost of materials consumed for Q2 was Rs. 480.94 lacs, lower than the previous year's figure, which aligns with the reduced revenue. Employee benefit expenses saw a slight increase to Rs. 39.08 lacs in Q2 from Rs. 31.28 lacs in Q2 of the previous year. Balance Sheet Overview As of September 30, Kay Power & Paper Limited reported total assets of Rs. 6482.14 lacs, a slight increase from Rs. 6232.91 lacs as of March 31. The company's equity share capital remained unchanged at Rs. 2209.00 lacs. Subsidiary Update The company has a wholly owned subsidiary, Satara Aerospace and Defence Industrial Park Pvt. Ltd., which was incorporated on June 5, 2024. However, this subsidiary has not yet commenced operations, and therefore, the consolidated financial results remain the same as the standalone results. Management Commentary The Board of Directors approved these results at their meeting held on November 12. The company has not provided any specific commentary on the factors affecting the quarterly performance or future outlook in the available information. Conclusion While Kay Power & Paper Limited has managed to maintain profitability, the company faces challenges with declining revenues. The marginal profit in a difficult operating environment suggests that the company may need to focus on cost management and operational efficiency to improve its financial performance in the coming quarters. We’re building Scanx - to help you express your trading & investing idea, to help you analyse the markets better. Stock Markets are the true indicator of the growth of any country's economy. We are bullish on India, we are bullish on India's prospects to be one of largest economies of the world. We believe that Stock Markets provide an unique opportunity for all Indians to participate in the growth story of India. We are enabling the same for Indians. As financial services are becoming more accessible, there is now a large set of Indians today who are financially aware and literate. They value time and seek high quality products & services. Most screening, trading, investing platforms available today are more or less similar to each other, and they have not evolved with time. While both traders & investors have gotten smart about how they make money and build wealth, as users they have continued to use the same products, features, and platforms that were available for years with little or no innovation. We plan to change that - a technology-led platform built for super traders and long term investors.