1. Approved the cancellation and capital reduction of existing Equity Shares consisting the paid-up share capital 3,00,73,262 Equity Shares of Rs. 10/- each amounting to Rs. 30,07,32,620/- ....
Awaiting price reaction for this filing.
The board approved cancellation of all existing 3,00,73,262 equity shares of Rs. 10 each (paid-up capital of about Rs. 30.07 crore) following an NCLT order dated 11 December 2024 under an approved Resolution Plan. As part of the restructuring, every 10 equity shares of Rs. 10 will be consolidated into 1 equity share of Rs. 100 (a reverse split). After this, the company will issue 1,06,316 fresh equity shares of Rs. 100 each (totalling about Rs. 1.06 crore) to the new Resolution Applicant (new promoter group) and existing eligible public shareholders. The share count will shrink dramatically from about 3 crore to about 1.06 lakh shares. The record date for these actions is yet to be announced and all steps are subject to regulatory and stock exchange approvals, with completion expected within three months.
This is a major corporate restructuring under the insolvency resolution process. Existing shareholders will end up with far fewer shares but at a higher face value (Rs. 100 instead of Rs. 10), and the company will have a new promoter group. Investors should watch for the record date announcement and carefully review how their holdings are treated under the Resolution Plan, as this could materially affect shareholding value and liquidity.