Intimation
Awaiting price reaction for this filing.
Shree Rajeshwaranand Paper Mills Ltd has fixed Friday, June 6, 2025 as the record date for a reduction of equity share capital, following an NCLT Ahmedabad order dated November 27, 2024 approving the Resolution Plan of Mercury Terra Firma under the Insolvency and Bankruptcy Code. Under this restructuring, all existing promoter shares will be entirely cancelled (existing promoters cease to be promoters), and non-promoter public shareholders will see their holdings reduced from 100 shares to just 6 shares of Rs. 10 each — a 94% cut, with fractional shares cancelled without any payment. Post-restructuring, the implementing entity Mercury Terra Firma will hold approximately 94.80% of the company (around 1.2 crore shares), while public shareholders will retain only about 5.20% (around 6.57 lakh shares). The company's revival plan involves Rs. 41.17 crore in payments to creditors and an additional Rs. 7 crore for working capital/capex within the first year.
This is a deeply negative event for existing public shareholders, who face a 94% destruction of their shareholding value with no compensation for the cancelled shares. The company is effectively being handed over to a new promoter (Mercury Terra Firma), and minority shareholders are left with negligible equity. The stock is likely to see extreme volatility and is a high-risk situation for retail investors.