Intimation letter for approval of Resolution Plan by Hon''ble Tribunal along with copy of order passed by the Tribunal.
Awaiting price reaction for this filing.
The National Company Law Tribunal (NCLT), Delhi Bench-III, has approved the Resolution Plan for RCI Industries and Technologies Limited (the Corporate Debtor) under Section 31 of the Insolvency and Bankruptcy Code, 2016, with JTL Industries Limited as the Successful Resolution Applicant (SRA). The CIRP had commenced on 25 November 2022 after Standard Chartered Bank (Singapore) Limited's Section 9 application was admitted. The CoC had approved the plan with 98.05% voting share. JTL Industries will infuse Rs 66.50 Crores in a phased manner and take over management of the company. The resolution plan involves a massive restructuring of share capital — all existing promoter and associate shares will be cancelled, and public shareholders' equity will be reduced to just 5% of the post-CIRP capital. Post-implementation, JTL Industries will hold 95% and public shareholders 5% of the company. The listing on BSE will continue after CIRP implementation. Pre-net worth was negative Rs 121.54 Cr (as on 31 March 2022) and post-net worth stands at negative Rs 154.40 Cr (as on 31 March 2025).
Existing public shareholders face severe dilution — their stake will shrink from 31.72% to just 5%, with most existing equity being cancelled and extinguished. Existing promoter shares are fully wiped out. The company will come under new management of the JTL Industries group (Chandigarh-based steel pipe manufacturer), but pre-existing liabilities will stand extinguished. While the company avoids liquidation and listing is preserved, near-term shareholder value is heavily impacted.