”The sale of 40 lakh shares of V-Guard Industries Ltd executed on February 17, 2021 was to raise funds for two initiatives I have undertaken as part of my commitment to social causes,” Chittilappilly said in a regulatory filing.
As per Chittilappilly, the K Chittilappilly Foundation (KCF) was formed to undertake charitable and philanthropic activities and had decided to execute a signature project named ”Chittilappilly Square (CS).
The work of the same is in progress and part of the proceeds of stake saie will be utilised for the said project. KCF had been working over the years in the area of entrepreneurial development, he said.
Chittilappilly said with a vision to assist entrepreneurs who face a shortage of funds to scale up their businesses, by providing credit funds at reasonable rates and terms, they have incorporated a company named K Chittilappilly Capital Pvt. Ltd., which has applied for Certificate of Registration as an NBFC (Non-banking financial company) from RBl.
Part of the proceeds of the stake sale will also be utilised for funding the said initiative, he added.
Shares of V-Guard lndustries closed 2.10 per cent higher at Rs 233.80 apiece on BSE.