Rossari Biotech' 'gift' move

Interesting development in Rossari Biotech. The company’s promoter, Sunil Srinivasan Chari, has transferred 88,00,000 equity shares, representing 15.89% of the company's total share capital, through an off-market inter-se transfer as a gift. 

The transfer is termed “off-market” because it did not happen through the stock exchange; instead, it was executed privately. It is labelled a “gift”, meaning no monetary consideration was involved.

18.5% is a very significant block — such a large shift usually signals succession planning or restructuring of ownership within the promoter family. Total number of shares in the company doesn’t change, so no dilution for public shareholders. But who owns that 18.5% may change boardroom influence, voting rights, or succession clarity.

This move is typically neutral for stock performance in the short term, as no open-market supply is created. However, investors will closely track upcoming shareholding disclosures to assess how ownership is being rebalanced within the promoter group. The focus is now on long-term governance and succession clarity, with no immediate dilution for public shareholders.

Many companies have done this – Adani’s, Ambani’s, Infosys, Apollo Hospitals, Sun Pharma, Godrej group.

The stock price surged over 2% to an intraday high at Rs.631.65 and is now trading at Rs.627. Volumes over two weeks is less than 3500 shares and market cap is around Rs.3600 crore.