Approved the cancellation and capital reduction of Exixting share
Awaiting price reaction for this filing.
The Board of Jiya Eco-Products Ltd approved a major restructuring following an NCLT-approved Resolution Plan under the Insolvency and Bankruptcy Code. The entire existing paid-up share capital of 3,00,73,262 equity shares of Rs. 10 each (totaling Rs. 30.07 crore) will be cancelled and the ISIN deactivated. Existing equity shares will be consolidated at a 10:1 ratio into shares of Rs. 100 face value. New 1,06,316 equity shares of Rs. 100 each (Rs. 1.06 crore) will be issued to the new Resolution Applicant (95% stake) and eligible existing public shareholders (5% stake). The authorized capital will remain Rs. 32 crore divided into 32 lakh shares of Rs. 100 each. The record date for these actions will be announced later, and execution is expected within 3 months subject to regulatory approvals.
Existing shareholders will see their current shares completely wiped out, with only a small allocation of 5% in the newly restructured company. This is essentially a loss event for current equity holders, as the old company shares are cancelled and replaced with a much smaller pool of new shares dominated by the new promoter. The stock is likely to face heavy selling pressure and a sharp price adjustment once these changes are implemented.