Bandhan Mutual Fund Boosts Tarc Ltd Stake to 5% Amidst ED Probe

Bandhan Mutual Fund, managing assets for Bandhan AMC, has increased its stake in TARC Limited to 5.0045% by acquiring an additional 47,999 shares. This move comes as the real estate developer faces ongoing scrutiny from the Enforcement Directorate regarding past transactions.

Latest Share Purchase

Bandhan Mutual Fund acquired 47,999 equity shares of TARC Limited on April 29, 2026. This purchase represents 0.0162% of the company's paid-up capital.

Following this acquisition, the fund's total holding now stands at 14,768,189 shares, making up 5.0045% of TARC's total equity share capital. The disclosure was made on April 30, 2026, in line with SEBI regulations for substantial acquisitions.

Investor Confidence Amidst Probe

For TARC, continued buying by institutional investors like Bandhan MF signals growing confidence in its operational progress, particularly its luxury project execution.

Crossing the 5% ownership threshold is notable for regulatory reporting and investor perception. However, this increased investment occurs against a backdrop of ongoing regulatory investigations and past governance concerns.

Tarc's Regulatory History

TARC Limited, formerly known as Anant Raj Global Ltd, is a key player in the luxury real estate segment in Delhi NCR, recognized for projects such as TARC Kailasa and Tripundra.

The company has a history of navigating regulatory challenges. In November 2022, SEBI imposed a penalty for non-disclosure of loan defaults. More recently, SEBI appointed a forensic auditor in December 2024 to review financial statements due to disclosure concerns.

In late April 2026, the Enforcement Directorate conducted searches related to transactions of a pre-demerged entity. TARC stated at the time that these searches had no material impact on the company. Bandhan Small Cap Fund is a notable public shareholder that has been increasing its exposure to Tarc.

What This Means Now

The increased stake by Bandhan Mutual Fund might lead to closer monitoring of TARC by the fund. TARC has now crossed the 5% ownership threshold, requiring further disclosures by Bandhan MF on any future stake movements.

While the acquisition could offer a modest boost to investor sentiment regarding TARC's operational traction, the ongoing ED probe and past SEBI actions continue to influence governance perceptions.

Key Risks Ahead

Investors are watching for potential regulatory actions or findings from the ongoing Enforcement Directorate investigation. The outcome of SEBI's forensic audit on financial disclosures could also lead to further action. Past issues with loan default disclosures and their potential implications remain a concern. Additionally, the company's financial health, including reported losses and high debt levels, requires careful monitoring.

Competitive Landscape

TARC operates in the competitive luxury real estate market, contending with major players like DLF, Godrej Properties, and Prestige Estates. While DLF leads in market capitalization and Godrej Properties in residential sales volume, TARC focuses on a niche luxury segment within Delhi NCR.

Key Financial Metrics

TARC Limited reported FY2026 sales of ₹1,373 crore and business cash flows of ₹1,132 crore. TARC Limited's total equity share capital as per the latest filing is INR 59,01,92,670.

Looking Ahead

Key developments to track include updates on the Enforcement Directorate's investigation, the outcomes of SEBI's forensic audit, and TARC's quarterly financial results and sales performance. Future stake movements by Bandhan Mutual Fund and other institutional investors, along with company announcements on project launches and debt management, will also be important.