Intimation in pursuant to Regulation 30 of SEBI Listing Regulation in respect of approval of cancellation and capital reduction of entire existing Equity shares consisting the paid up share ....
Awaiting price reaction for this filing.
Jiya Eco-Products, currently undergoing insolvency resolution, has approved the cancellation of its entire existing paid-up equity share capital of 3,00,73,262 shares of Rs. 10 each (totalling Rs. 30.07 crore) without paying any consideration to current shareholders, as per the NCLT-approved Resolution Plan dated 11 December 2024. The Board has fixed 4 July 2025 as the Record Date for this cancellation, which is binding on all shareholders under IBC rules and does not require shareholder approval. After this, the company will consolidate 10 shares of Rs. 10 into 1 share of Rs. 100 (reverse split), and then issue 1,06,316 fresh shares of Rs. 100 — about 1,01,000 to the new promoter (Mr. Pradeep Khandagale) and roughly 5,316 to existing eligible public shareholders to maintain the mandatory 5% public shareholding. Effectively, existing public shareholders will see their holdings cancelled and replaced with a much smaller number of new shares at a heavily diluted ratio.
This is a value-destructive restructuring for existing public shareholders — their shares are being wiped out with no cash payment, and only a small fraction of new shares (subject to regulatory approvals) will be allotted in return. Shareholders should review whether they qualify as 'Eligible Public Shareholders' under the Resolution Plan, as the new equity will be heavily concentrated with the new promoter (around 95% holding). Expect extreme share price volatility around the 4 July 2025 record date.