Approval of Resolution Plan by Hon''ble NCLT Bengaluru Bench in Respect of Majestic Research Services and Solutions Limited.
Awaiting price reaction for this filing.
The NCLT Bengaluru Bench has approved the resolution plan for Majestic Research Services and Solutions Ltd (MRSS) on June 20, 2025, under the Insolvency and Bankruptcy Code. The plan was submitted by Mrs. Rashmikaben Patel along with M/s Seazone Granito Private Limited and was earlier approved by the Committee of Creditors with 94.93% voting share. Total admitted claims stood at around Rs. 14.11 crore, with the successful bidder offering Rs. 8.26 crore (about 77% recovery) to be paid in two equal installments within 30 and 60 days. Secured financial creditors Axis Bank and EXIM Bank will receive 68.77% of their admitted dues, unsecured creditors like Tata Capital will get around 7.86%, while operational creditors and existing equity shareholders are getting almost nothing. Post-implementation, the company's share capital will shrink from Rs. 10.02 crore to Rs. 41.3 lakh, with the new promoters owning 95% and existing public shareholders retaining just 5%. The company will be taken over on a going concern basis, all old charges on assets will be released, and the board will be reconstituted with new directors from the Patels family.
This is a positive turning point for shareholders as it ends the insolvency process and brings in new management and capital, but existing equity holders have been heavily diluted (from 100% to just 5% combined) and recovered nothing under the plan. Going forward, the stock may see renewed trading interest as a revamped entity, though investors should note the massive value destruction for original shareholders and the modest 77% recovery for creditors overall.