Updater Services Ltd promoter gifts 2.34 million shares to brother, reducing his holding to zero

What Updater Services announced

On 2 July 2026 Updater Services Limited filed a disclosure with the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) under Regulation 29(1) and 29(2) of the SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011. The filing states that promoter Anjan Sarma has gifted 2,344,025 equity shares of the company to his brother Tangirala Venkata Subbiah Sarma on 30 June 2026. As a result of the gift, Anjan Sarma’s shareholding fell from 3.50 % of the paid‑up share capital to 0 %, effectively leaving him with no voting rights in the company.

The company’s secretary, Sandhya Saravanan, confirmed that there is no change in the aggregate shareholding of the promoter group after the transaction, implying that the shares remain within the promoter family. The disclosure was submitted in the prescribed format and is now on record with the exchanges.

Details of the share transfer

• Shares transferred: 2,344,025 equity shares
• Percentage of paid‑up capital: 3.50 %
• Date of transfer: 30 June 2026
• Mode of transfer: Off‑market gift (inter‑promoter transfer)
• Pre‑transfer holding (Anjan Sarma): 2,344,025 shares (3.50 %)
• Post‑transfer holding (Anjan Sarma): 0 shares (0 %)
• Recipient: Tangirala Venkata Subbiah Sarma (brother of the donor, also a promoter)
• Total equity share capital: Rs 66,95,32,410 divided into 6,69,53,241 shares of Rs 10 each (unchanged before and after the transfer)

The filing includes a detailed table required by Regulation 29, showing the before‑and‑after figures for voting‑right shares, encumbrances, and other categories. All categories other than equity shares are marked as ‘‑’, indicating no pledges, liens, or convertible instruments were involved.

Regulatory filing and compliance

The disclosure is made under Regulation 29(1) and 29(2) of the SEBI (SAST) Regulations, 2011, which mandates promoters to inform the stock exchanges of any substantial acquisition or disposal of shares. The filing satisfies the following regulatory requirements:

1. Identification of parties – The donor (Anjan Sarma) and the recipient (Tangirala Venkata Subbiah Sarma) are named, along with their PAN numbers.
2. Nature of transaction – Described as an off‑market gift, i.e., an inter‑promoter transfer without consideration.
3. Quantitative details – Exact number of shares, percentage of total share capital, and the impact on voting rights are disclosed.
4. Effect on promoter group – The company explicitly states that the aggregate promoter holding remains unchanged, satisfying the SEBI requirement to assess any change in control.
5. Filing timestamps – The disclosure was submitted to BSE and NSE on 2 July 2026 (timestamp 03:41:10 UTC).

By filing promptly, Updater Services ensures compliance with SEBI’s disclosure norms, thereby maintaining transparency for market participants.

Key facts at a glance

Why this matters for investors

For shareholders, the key implication is the unchanged overall promoter stake. Although Anjan Sarma’s individual holding drops to zero, the shares have moved to another promoter within the same family, meaning control of the company remains effectively the same. Consequently, there is no dilution of existing shareholders’ voting power and the capital structure of the company is untouched.

The transaction is also off‑market, indicating that it did not involve a public offer or affect market liquidity. Investors therefore do not need to anticipate any immediate price impact from a large block sale. However, the filing does highlight the promoter’s willingness to restructure internal holdings, which could be relevant for future corporate actions that depend on promoter consensus.

Regulatory compliance is another positive signal. By promptly filing under SEBI’s takeover regulations, Updater Services demonstrates adherence to disclosure norms, reinforcing governance standards expected by institutional investors.

Conclusion

Updater Services Limited disclosed that promoter Anjan Sarma gifted 2,344,025 equity shares (3.5 % of the paid‑up capital) to his brother Tangirala Venkata Subbiah Sarma on 30 June 2026. The off‑market transfer reduced Anjan’s individual holding to zero but left the overall promoter group’s shareholding unchanged. The filing, made on 2 July 2026 under SEBI Regulation 29, satisfies all statutory disclosure requirements and does not alter the company’s capital structure or voting dynamics.

Investors can note that the transaction is an internal reshuffle rather than a market‑driven sale, and no further regulatory approvals are pending for this specific share transfer.