Cessation old Board as per NCLT order
Awaiting price reaction for this filing.
J.R. Foods Limited (BSE: 530915) has begun implementing an NCLT-approved scheme whereby Datacipher Solutions Private Limited merges into the company. As per the NCLT Chennai Bench order dated 24 July 2025, 100% of the existing promoter shareholding is being cancelled and reduced to zero. Public shareholders face severe dilution: out of every 10 shares held, 9 shares will be cancelled and only 1 share retained; those holding 9 or fewer shares will lose their entire holding without any cash compensation. Record date for capital reduction is 30 August 2025. The successful resolution applicants (led by Mr. Amarandhar Reddy Kotha) will be allotted 72,80,912 fresh equity shares of ₹10 each, effectively taking over the company. The old board (Mr. Kothari Dinesh, Mr. Gopi, Mrs. Kamala) has ceased, and a new management team with Kotha as Managing Director has been appointed.
Existing public shareholders will see a 90% loss in shareholding (9 out of 10 shares extinguished) with no cash compensation for small holders. The company has effectively changed hands to the Datacipher resolution applicant group, with a completely new board. The stock is likely to see significant disruption in trading due to the capital reduction and change in business direction.