Allotment of second tranche of CRPF
Awaiting price reaction for this filing.
Ballarpur Industries' board approved the second tranche allotment of 57 lakh 0.01% unlisted noncumulative redeemable preference shares at par (₹100 each), aggregating ₹57 crore, to Finquest Financial Solutions Private Limited, the company's resolution applicant and controlling entity post-CIRP. The board also approved audited standalone FY25 results with a modified (qualified) audit opinion from Batliboi & Purohit. FY25 revenue from operations stood at ₹18.61 crore (vs ₹9.18 crore in FY24), but the company posted a net loss of ₹66.76 crore (vs ₹252.57 crore prior year), with EPS of ₹(12.14). Land impairment of ₹12.45 crore was recorded as an exceptional item, and ₹495 crore of non-current assets remain classified as held for sale. Approval of consolidated financial results for multiple past quarters (Jun'23, Sep'23, Dec'23, Mar'24) was deferred. CFO Hardik B. Patel resigned effective May 26, 2025, with Anil Mehta (Chartered Accountant, formerly Joint CFO at Hind Rectifiers) appointed as new CFO from May 27. Company Secretary Punit Bajaj will resign on June 30, 2025. The auditor flagged a modified opinion around unprovided penalties from NSE/BSE for delayed financial result filings; the company has filed an interlocutory application with NCLT seeking relief.
The ₹57 crore preference share infusion from the existing promoter/Resolution Applicant (Finquest) at a token 0.01% dividend is effectively quasi-equity support, reinforcing the promoter commitment to revive operations post-insolvency rather than providing meaningful income. For shareholders, this is mildly positive as continued funding reduces near-term liquidity risk, but the modified audit opinion, deferred consolidated results, going-concern uncertainty, and ₹495 crore held-for-sale assets signal the stock remains a high-risk restructuring story. The senior management exits (CFO and Company Secretary) within days add near-term governance noise.