Kalyani Steels boosts stake in DGM Realties to 99.91% after debenture conversion

Kalyani Steels Limited announced on September 11, 2025, the conversion of 8,630,000 Fully Convertible Debentures (FCDs) of ₹100 each, held in its subsidiary DGM Realties Private Limited (DGM). These FCDs were converted into an equal number of equity shares of ₹10 each, issued at a premium of ₹90 per share. This transaction increases Kalyani Steels' holding in DGM to 11,596,000 equity shares, representing 99.91% of DGM's paid-up capital. The cost of acquisition for these 8,630,000 equity shares is ₹863 million.

DGM Realties Private Limited, with an authorized capital of ₹140 million and a paid-up capital of ₹29.76 million as of March 31, 2025, operates in the real estate industry. For the fiscal year 2024-25, DGM reported a turnover of ₹36.01 million. The conversion is categorized as a related party transaction and was conducted on an arm's length basis, as per the terms of the original FCD issue. Kalyani Steels initially invested in DGM's FCDs in 2015, recognizing a 25-acre land parcel near the Bengaluru Mysuru Highway Corridor as suitable for its marketing network and business development.