Board Meeting outcome for allotment of shares and reduction of capital pursuant to the approved resolution plan dated July 27, 2023.
Awaiting price reaction for this filing.
Rathi Graphic Technologies, which went through the insolvency resolution process, has implemented the NCLT-approved resolution plan dated July 27, 2023. The company cancelled 99% of its existing equity capital (1,62,74,610 out of 1,64,39,000 shares), wiping out existing promoters entirely. After this reduction, fresh equity shares of 11,94,790 (face value Rs.10 each, total ~Rs.1.19 crore) were allotted on a preferential basis to the resolution applicants — Surbhika Steels Pvt Ltd and Daga Infrastructure Pvt Ltd — who become the new promoters with 87.91% combined stake. The post-restructuring paid-up capital stands at Rs.1.35 crore consisting of 13,59,180 shares. Public shareholders now hold only 12.09%, down from 45.46% earlier, due to the steep 99% capital reduction. Record date for the restructuring was March 21, 2025.
Existing shareholders have effectively seen a 99% destruction of their shareholding value as part of the insolvency resolution — this is a very negative outcome for legacy public investors. For the stock, expect extreme volatility and a likely sharp gap-down/price reset reflecting the new diluted capital structure. The company is now effectively under new promoter control (Surbhika Steels + Daga Infrastructure), and future performance will depend on the new management's revival plan.