LGB Forge Ltd reports disposal of 48.03 lakh shares by LG Farm Products, breaching 2% threshold

What LGB Forge announced

On 1 July 2026, LGB Forge Ltd (BSE scrip 533007) filed a disclosure under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011. The filing reports that LG Farm Products Private Limited, a promoter of LGB Forge, disposed of 48.03 lakh equity shares in a series of transactions carried out between 11 June 2026 and 25 June 2026. The cumulative disposals breached the 2 % share‑holding threshold that mandates a public disclosure under the takeover code.

Details of the share disposal

• Acquirer/Seller: LG Farm Products Private Limited (promoter) and its Persons Acting in Concert (PAC).
• Number of shares sold: 48,03,181 equity shares (≈ 2.02 % of total share capital).
• Period of disposals: 11 June 2026 – 25 June 2026.
• Trigger event: The sale of 81,910 shares on 25 June 2026 pushed cumulative disposals over the 2 % threshold, activating the Reg 29(2) filing requirement.
• Mode of acquisition/sale: The filing does not specify the exact market mechanism (open market, off‑market, etc.).

Shareholding before and after the disposals

The total voting capital of the company remained unchanged at 23.82 crore shares because the disposals were internal transfers among existing shareholders and did not involve issuance or cancellation of shares.

Regulatory context

Regulation 29(2) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 requires any person or group acquiring or disposing of shares that results in crossing the 2 % threshold of the target company's voting capital to disclose the transaction to the stock exchange. The purpose is to ensure transparency for all market participants and to alert shareholders of significant changes in control.

In this case, LG Farm Products’ cumulative disposals of 48.03 lakh shares (≈ 2.02 % of the total share capital) triggered the filing. The disclosure lists the persons acting in concert, their individual holdings, and confirms that the total equity share capital of LGB Forge remains at 23.82 crore shares.

Key facts at a glance

Why this matters for investors

• Transparency: The filing satisfies SEBI’s requirement for public disclosure when a promoter’s shareholding crosses the 2 % threshold, ensuring that investors are aware of changes in control dynamics.
• Shareholding pattern: After the disposals, the promoter’s direct stake fell to 1.48 %, while the PAC continues to hold 69.40 %. The overall voting power of the promoter group is therefore reduced, which may affect future strategic decisions that require promoter consent.
• No dilution: The total equity share capital of LGB Forge remains unchanged, meaning there is no dilution of existing shareholders’ equity.
• Regulatory compliance: By filing promptly, LGB Forge demonstrates adherence to SEBI’s takeover regulations, reducing the risk of regulatory penalties.

Conclusion

LGB Forge Ltd disclosed that its promoter, LG Farm Products Private Limited, sold 48.03 lakh shares between 11 June 2026 and 25 June 2026, breaching the 2 % threshold under SEBI’s takeover regulations. The filing, made on 1 July 2026, updates the shareholding pattern, showing a reduced promoter stake while the overall voting capital remains unchanged. No further regulatory actions are indicated in the filing, and the company’s capital structure stays intact.

"The disposal of 48.03 lakh shares by LG Farm Products triggered the mandatory Reg 29(2) disclosure, reflecting a promoter holding of 1.48 % post‑sale."