Palash Securities Limited — Important, 18-11-2025: Disclosure of material issue

Palash Securities (PSL) has announced a significant change regarding Morton Foods (MFL). PSL's equity holding in MFL, previously a material unlisted subsidiary, has been reduced to 44.95%.

**Issue:** MFL undertook a Rights Issue, allotting 44.61 lakh equity shares at Rs. 10 each with a premium of Rs. 13 per share, raising a total of Rs. 10.26 Cr.

**Company's Response:** PSL chose not to participate in this Rights Issue.

**Possible Impact:** As a direct result of PSL not participating, its stake in MFL dropped below 50%. Consequently, MFL ceases to be a subsidiary of PSL. This means MFL will no longer be fully consolidated into PSL's financial statements, which could impact PSL's reported consolidated revenues, profits, and assets going forward, reflecting MFL as an associate or investment rather than a controlled entity. #EquityUpdate #PSL #MFL