Approval of Resolution Plan by Hon''ble NCLT Hyderabad bench
Awaiting price reaction for this filing.
The NCLT Hyderabad Bench approved the resolution plan for Taaza International Limited on 12 June 2025, with Successful Resolution Applicant Mrs. Jhansi Sanivarapu and Keto Motors Private Limited as co-applicant, approved by 100% of the Committee of Creditors. The plan involves a merger of Keto Motors Pvt Ltd (an EV manufacturer with Rs 24.69 crore FY24 revenue) into Taaza, with the listed entity to be renamed Keto Motors Limited. Total plan amount is Rs 9.10 crore covering all admitted claims of Rs 6.02 crore at 0% hair cut, plus Rs 5 crore additional equity infusion from strategic investors post-CIRP, taking total fund infusion to Rs 14.10 crore. About 5.6 crore new equity shares will be issued to Keto Motors shareholders under a 3:2 swap ratio, expanding total shares to 7.04 crore. Existing Taaza shareholders will be paid Rs 2.69 crore (Rs 3.70 per share) and will see their holding fall to 0.41% public stake, while Keto Motors shareholders will become 79.57% owners. Implementation must be completed within 60 days of NCLT approval, with the stock to remain listed on BSE.
Massive dilution for existing Taaza shareholders (from 100% to 0.41%), with a small cash payout of Rs 3.70/share; however, the company will be revived as a going-concern EV manufacturer rather than liquidated. Stock is likely to re-rate based on Keto Motors' EV business prospects, but the new promoter group will control ~92% of the expanded entity.