The Investment Trust Of India Limited — Important, 05-11-2025: Disclosure of material issue

The Investment Trust of India Ltd (#THEINVEST) has announced a board meeting. Key takeaways for investors:

**Financial Performance:**

* **Consolidated:** The financial results for the quarter show revenue from operations at ₹79.06 Cr. For the half-year, consolidated revenue reached ₹149.16 Cr. Net Profit after tax for the quarter stood at ₹5.61 Cr, with the half-year profit at ₹15.82 Cr. Quarterly Basic EPS was ₹0.56, and half-year EPS was ₹2.31.

* **Standalone:** The financial results for the quarter show standalone revenue at ₹3.47 Cr, and for the half-year, ₹6.17 Cr. The company reported a standalone net loss after tax of ₹0.32 Cr for the quarter and ₹0.20 Cr for the half-year. Quarterly Basic EPS was ₹(0.06).

**Investor Focus Points:**

1. **Demerger Progress:** The previously announced scheme to demerge the 'Non-lending Business Undertaking' into a wholly-owned subsidiary (Distress Asset Specialist Limited) is still awaiting various regulatory and shareholder approvals. This ongoing process could reshape the company's structure once completed.

2. **ESOP Extension & Potential Dilution:** The Board approved extending the "FFSIL- Employees Stock Option Plan 2017" to eligible employees of subsidiary companies. This scheme involves the *new issue of up to 0.30 Cr equity shares*. While aiming to incentivize employees, this will result in *dilution* for existing shareholders. This move is subject to shareholder approval via postal ballot.

3. **Preference Share Redemption:** Approval was given for the redemption of 10,050 unlisted 0% Optionally Convertible Preference Shares (OCPS) of face value ₹325 each, totaling approximately ₹0.33 Cr. These shares are due for redemption on December 30, 2025. No conversion requests to equity shares have been received, and the redemption will be funded from the company's profits/reserves, avoiding further dilution or new debt.