Rathi Steel & Power Board Approves Promoter Reclassification

DBG Leasing and Housing Limited moves from 'Promoter' to 'Public' category.
Board confirms DBG holds less than 10% voting rights with no management control.

Reader Takeaway: Reclassification reflects post-insolvency management changes; zero impact on daily company operations or public shareholding compliance.

What just happened

The Board of Directors of Rathi Steel & Power Ltd, meeting on September 28, 2026, formally approved the reclassification of DBG Leasing and Housing Limited (DBG) from the 'Promoter & Promoter Group' to the 'Public' category. This follows a request submitted by DBG on September 19, 2026, prompted by significant changes in DBG's own corporate structure.

Why this matters

This action formalizes the separation between Rathi Steel and its former promoter following the insolvency of the latter. The board's assessment confirms that DBG no longer exerts influence over Rathi Steel. Specifically, DBG does not hold board seats, lacks nominee directors, and does not participate in key managerial decisions. The reclassification aligns the company's records with current ownership realities, ensuring transparency for shareholders regarding promoter group constitution.

The backstory

The change stems from the Corporate Insolvency Resolution Process (CIRP) undergone by DBG under the Insolvency and Bankruptcy Code. An NCLT order dated June 13, 2025, resulted in a shift in management control at the DBG entity level, rendering its status as a promoter of Rathi Steel inconsistent with its new operational reality.

Compliance and Next Steps

The board noted that Rathi Steel remains fully compliant with SEBI’s Minimum Public Shareholding (MPS) norms under Regulation 38. The reclassification is not a mechanism for achieving regulatory compliance but a procedural adjustment. The proposal remains subject to final approval from stock exchanges, company shareholders, and other relevant regulatory bodies under Regulation 31A of the LODR.