Corporate Announcement for the order dated 3rd June, 2025 issued by the National Company Law Tribunal, Mumbai Bench.
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Mumbai Bench has passed an order dated 3rd June 2025 in connection with the insolvency and liquidation proceedings of Nitin Fire Protection Industries Ltd. The company was admitted into Corporate Insolvency Resolution Process in October 2018 and subsequently moved into Liquidation in January 2022. Silver Stallion Limited Consortium (with Vikasa India EIF I Fund and AIG Direct LLC) emerged as the successful bidder, and the Liquidator issued the Sale Certificate on 3rd October 2024 after selling the company as a going concern. The NCLT has now granted clean slate status, extinguishing all liabilities of the company as per the Section 53 waterfall mechanism of the IBC. A new Board of Directors will be appointed to oversee day-to-day operations, and the new management may explore fresh business opportunities to revive the company.
This is a major positive development for the stock — all past liabilities stand extinguished under the clean slate order, effectively giving the company a fresh start under new ownership. Existing shareholders are likely to face significant dilution or value erosion as the new consortium takes control, but the company may now resume operations and potentially regain a listing-active status.