Megri Soft Ltd has deconsolidated its UK subsidiary, Megrisoft Limited, following a share allotment that reduced the parent's stake from 62.5% to 14.29%. While Megri Soft retains its existing shareholding as an investment, the move removes the entity from its consolidated financial reporting. Given the subsidiary contributed 18.84% to the company's FY2026 turnover, investors should anticipate shifts in future consolidated financial statements.
Megri Soft Ltd Deconsolidates UK Subsidiary
- Parent stake diluted from 62.50% to 14.29%.
- UK unit contributed 18.84% to FY2026 consolidated turnover.
Reader Takeaway: Deconsolidation follows share dilution; Megri Soft retains minority stake but loses reporting control over UK unit.
What just happened
Megri Soft Ltd announced that its UK-based entity, Megrisoft Limited, is no longer a subsidiary effective September 18, 2026. This change was triggered by the issuance of 540 new shares to a related party, Ms. Aprajita Kohli, which diluted the parent company's ownership. Megri Soft emphasized that it did not sell its own shares, nor did it receive any financial consideration for this change in status.
Why this matters
As a subsidiary, Megrisoft Limited was integrated into the company's consolidated financial results. With this transition to an associate or investment status, the UK unit’s financial performance will no longer be fully consolidated into Megri Soft's main books. Investors must note that this unit accounted for nearly 19% of the company's total turnover in the previous fiscal year, meaning future top-line reports may look significantly different.
Governance Update
The exit from the subsidiary status is accompanied by the resignation of Mr. Mohnesh Kohli from the Board of Directors of the UK unit, effective September 18, 2026. This indicates a broader realignment of the board structure following the ownership change.
Context metrics
For the fiscal year ended March 31, 2026, the subsidiary contributed INR 54.96 lakh to consolidated turnover (18.84%) and INR 43.98 lakh to the consolidated net worth (1.91%).
What to track next
Shareholders should monitor upcoming quarterly results to understand how the deconsolidation impacts the consolidated profit and loss statements. The company will now account for its remaining 100 shares as an investment rather than a controlled business segment.