Implementation of Approved Resolution Plan
Awaiting price reaction for this filing.
Jiya Eco-Products has started implementing the resolution plan approved by NCLT Ahmedabad on December 11, 2024, under the Insolvency and Bankruptcy Code. The plan was submitted by Mr. Pradeep Kisan Khandagale, who has now taken over as Whole-time Director after acquiring the company. All five previous directors have been replaced by a new five-member board. The new promoter has paid Rs. 4.91 crore to the company, which has been used to pay off part of the company's liabilities. In upcoming board meetings, the company will consider capital restructuring including cancellation of existing shares, share consolidation, and issuance of fresh equity shares as per the resolution plan.
Existing shareholders face significant uncertainty as their equity shares may be cancelled or restructured, likely leading to substantial dilution or loss of value. The company has effectively come under new ownership through the IBC process, and shareholders should prepare for a major change in their holdings and the stock's valuation once the capital restructuring is completed.