Stock Market News: Promoters suddenly pledged their major stake - brakes on the rise of the stock

News Topical, Digital Desk : It is an Indian pharma company which is mainly engaged in the manufacturing and supply of Active Pharmaceutical Ingredients (APIs) and Intermediates. This company is one of the strong companies in the pharma sector of India which manufactures APIs for multi-therapy areas and supplies them to pharma companies worldwide. API (Active Pharmaceutical Ingredients) The company manufactures APIs used in the treatment of many diseases such as Anti-ulcer (eg Ranitidine), Anti-epileptic (eg Levetiracetam), Anti-fungal, Anti-migraine, Anti-HIV, Anti-cancer and is also prepared for many lifestyle and chronic diseases.

Pharma Intermediates- The intermediate phases between APIs i.e. intermediates are also manufactured, which are supplied to many companies to make the final API. The company also provides Contract Research and Manufacturing Services (CRAMS), i.e. it manufactures APIs and pharma molecules for other brands. The company's manufacturing plants are located in Telangana and Andhra Pradesh.

Many of these units have received approval from global regulatory bodies like USFDA, EDQM (Europe), WHO-GMP, and KFDA (Korea). The company exports its APIs and intermediates to many countries like India, Europe, America, Japan, South Korea, and Latin America. This company is SMS Pharmaceuticals. Information has come from the company about pledge of shares by the promoters. Hima Bindu Potluri, promoter of SMS Pharmaceuticals Ltd, has created a Non-Disposal Undertaking (NDU) on 30 lakh equity shares (about 3.54% stake) of the company. The company has given this information by sending a revised disclosure to BSE and NSE under SEBI rule 31. Hima Bindu Potluri has not pledged 30,00,000 shares of SMS Pharmaceuticals Ltd, but has given a non-sale undertaking (NDU) - that is, these shares will not be transferred or sold under any circumstances. Earlier in the report of 27 March 2025, the number of shares was stated as 30,00,0000 (one zero more). Now in the revised form on 27 June, it has been stated as 30 lakh. This NDU has been given as security for Non-Convertible Debentures (NCDs) issued by Potluri Laboratories Pvt Ltd. These debentures have been subscribed by Avendus PE Investment Advisors. Potluri Labs is a promoter group company and SMS Pharma promoter Hima Bindu Potluri has created this NDU for them. Potluri Labs is using these funds for long term strategic plans, working capital and general corporate purposes. Hima Bindu has already pledged 1.06 crore shares (12.55% stake) of SMS Pharma in favour of Vistra ITCL (India). This pledge is as security for VKT Pharma's debentures. Now out of Hima Bindu Potluri's total stake in SMS Pharmaceuticals, 16.09% shares are pledged or under NDU. 

The total stake of the promoter group in SMS Pharma is 64.67%. This disclosure has been made under SEBI (SAST) Regulation 31, which ensures transparency of pledged or undertaking shares. NDU does not mean that the shares have been sold — but it shows that the promoter group is using its holdings to secure financing. Investors should keep an eye on this, especially the repayment capacity of the debentures. 

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