Asian Paints announced that Smiti Holding and Trading Company Private Limited, a promoter group entity, increased its encumbered shares. The total number of shares encumbered rose by 3,670,000 to 38,500,000, representing 4.01% of the total share capital. The encumbrance, in the form of a pledge, was created on December 1, 2025, in favor of Jio Credit Limited, for loan purposes. Post-event, the total promoter group encumbered shares remain at 4.01%.
Details of Encumbrance
Smiti Holding and Trading Company Private Limited increased its pledged shares in Asian Paints on December 1, 2025. The encumbrance was executed through a pledge in favor of Jio Credit Limited, aimed at securing a loan.
Increase in Pledged Shares
The number of shares pledged increased by 3,670,000, bringing the total number of pledged shares to 38,500,000. This represents 4.01% of the total share capital of Asian Paints. The increase in pledged shares reflects a strategic financial move by the promoter group.
Promoter Holding Post Encumbrance
Despite the increased encumbrance, the total promoter holding remains consistent. Smiti Holding continues to hold 517,676,38 shares, representing 5.40% of the total share capital. Other promoter group entities have not altered their holdings or encumbrances as of December 3, 2025.
Reason for Encumbrance
The purpose of this pledge is to secure a loan. The increased encumbrance is a strategic financial decision made by Smiti Holding. This financial maneuver is designed to support the company’s financial objectives.
Source: BSE