Intimation of Record Date 13th June, 2025
Awaiting price reaction for this filing.
Shree Rajeshwaranand Paper Mills has fixed Friday, 13 June 2025 as the record date for a sharp reduction of equity share capital, as part of its insolvency resolution plan approved by NCLT Ahmedabad on 27 November 2024. Under the plan, all shares held by existing promoters will be fully cancelled, and non-promoter (public) shareholders will see their holdings reduced from 100 shares to just 6 shares — a 94% cut. Fractional shares arising from the restructuring will be cancelled with no cash payment. Post-restructuring, the resolution applicant Mercury Terra Firma will hold about 1.20 crore shares (94.80%), while existing public shareholders will retain only around 6.58 lakh shares (5.20%), and promoters will hold nothing. The company is emerging from the Corporate Insolvency Resolution Process with new management and a fresh capital structure.
This is highly negative for existing public shareholders, who will lose roughly 94% of their shareholding with no compensation for the cancelled shares. The stock is likely to see sharp downward repricing on record date. However, the company is exiting insolvency under new promoter Mercury Terra Firma, which has committed Rs. 10.20 crore in equity infusion and additional funds for revival.