Intimation of issuance of Letter of Intent under the Liquidation Proceedings
Awaiting price reaction for this filing.
Richa Industries Limited, currently under liquidation, has issued a Letter of Intent dated October 16, 2025 to Sh. Narendra Kumar Srivastava (on behalf of a consortium with Kaveri Industries) for the acquisition of the entire company as a going concern. The decision was taken after the Stakeholders Consultation Committee approved the auction of the company's assets, which were put up for sale as per the IBBI (Liquidation Process) Regulations, 2016. The Letter of Intent represents the preferred bidder selection but the sale is not yet finalized. The company is registered with BSE under scrip code 532766 and is being represented by its liquidator Mohit Chawla.
This is a negative development for existing shareholders, as the Letter of Intent during liquidation signals that equity value is likely to be wiped out with lenders and creditors taking priority. A final sale may provide some clarity on residual shareholder value, but recovery for equity holders in liquidation is typically minimal or nil.