🏢 About Digjam Limited
Digjam Limited is an established player in India’s textile industry, headquartered at Aerodrome Road, Jamnagar, Gujarat. Registered under CIN: L17123GJ2015PLC083569, the company has steadily rebuilt its presence by leveraging the rich heritage of India’s textile legacy. With a renewed strategic approach, Digjam is set to unlock synergies through structural changes, aligning itself with modern market dynamics.
🗂️ Key Highlights of the Latest Board Meeting
On 29th June 2025, Digjam’s Board of Directors took pivotal decisions under Regulation 30 of SEBI (LODR) Regulations, 2015. The meeting, running from 6:15 PM IST to 10:05 PM IST, demonstrates the Board’s commitment to transparent governance and proactive strategic alignment.
📑 Main Outcomes at a Glance
✔️ Resignation:
Mr. Parashiva Murthy B S stepped down as Director, citing personal reasons and other professional commitments. His tenure saw valuable contributions, duly acknowledged by the Board.
✔️ Appointment:
In a seamless transition, Dr. Ruchit Bharat Patel (DIN: 00603359) has been appointed as Additional Director (Non-Executive, Non-Independent). Dr. Patel brings multi-sector experience, notably from the healthcare and finance space. His broad expertise is expected to steer Digjam towards more diversified thinking.
✔️ Scheme of Arrangement:
A transformative demerger plan has been approved. Reid & Taylor International Private Limited’s Textile Undertaking will merge into Digjam Limited. This restructuring is under Sections 230–232 of the Companies Act, 2013.
🧶 Detailed Insights: Why This Matters
What’s happening?
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The Textile Business of Reid & Taylor International Private Limited (RTIL) is being transferred to Digjam Limited.
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The appointed date for this arrangement is 1st July 2025.
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This move aligns both companies under the Finquest Group, streamlining operations under one robust entity.
Financials:
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The turnover of the demerged unit for FY 2024–25 was ₹48,881.12 Lakhs, representing 2,686% of Digjam’s turnover.
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The shareholding post-demerger shifts to ~75% promoter group and 25% public, ensuring retail stakeholders remain integral.
No cash payout:
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Instead, shareholders of RTIL will receive Digjam’s shares under a structured share exchange:
👉 46,481 Digjam shares for every 100 RTIL shares
🧩 Rationale Behind the Move
🔹 Unified Strength:
The integration optimises use of skills, cash flows, and operational efficiencies.
🔹 Cost Efficiency:
Expect economies of scale, streamlined compliances, and administrative savings.
🔹 Stronger Focus:
Focused leadership on textiles will help Digjam scale niche segments and premium offerings.
🔹 Retail Value Creation:
With the merged textile business, the Resulting Company is positioned for higher revenues and profit growth over time.
💹 Effect on the Share Market
This strategic restructuring is a strong positive signal for Digjam’s market narrative:
📈 Potential Impact:
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Investors can anticipate an increase in operational scale and synergy-driven profit margins.
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More shares issued means higher free float — attracting new retail participation.
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Clarity and simplicity post-merger enhance investor confidence.
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No dilution for cash — all through share swaps — keeps cash reserves healthy.
CMP: (Note: Please verify real-time)
At the time of writing, Digjam Limited trades around ₹47.20 per share (illustrative) on BSE/NSE.
🧑💼 How This Benefits Retail Traders
🟢 Access to a consolidated textile business means better market visibility for Digjam.
🟢 More transparent shareholding pattern — new shares will be listed too.
🟢 Likely upward re-rating if operational synergies deliver higher margins and cost savings.
🟢 Investors holding RTIL also get Digjam shares — potential for portfolio consolidation.
🟢 Retail traders can watch for technical breakouts post-demerger news flow.
🔑 Key Market Data
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Company: Digjam Limited
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Sector: Textile & Apparel
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Registered Office: Jamnagar, Gujarat
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Symbol: DIGJAMLMTD
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BSE Code: 539979
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Shareholding Post-Demerger: Promoter ~74.97%, Public ~25.03%
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Turnover (Demerged Division): ₹488.81 Cr. FY25
💬 Suggested Chat Prompt for Users
👉 “What’s your view on Digjam’s strategic merger? Do you see this textile synergy driving multi-year growth? Share your take below — let’s decode this together!”
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📉 Stock Market Disclaimer
Disclaimer: This post is for informational and educational purposes only and does not constitute financial advice or a recommendation to buy/sell any stock or share. Investing in the stock market involves risk. Past performance is not indicative of future results. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
