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Awaiting price reaction for this filing.
Jyoti Limited is seeking shareholder approval through a postal ballot (e-voting from April 18 to May 17, 2025) to ratify the issue and allotment of 59,63,636 equity shares to Rare Asset Reconstruction Pvt. Ltd. (now Rare Asset Reconstruction Limited) at Rs. 55 per share (Rs. 10 face value + Rs. 45 premium), aggregating to about Rs. 32.80 crore. This allotment was originally made on May 2, 2018 as part of a debt-to-equity conversion under the SARFAESI Act, 2002, after Dena Bank assigned the company's defaulted loan to Rare Asset. The Bombay Stock Exchange had refused to list these shares because shareholder approval under Section 62 was not obtained earlier, and after going through SAT and the Supreme Court, the company has now been directed to seek this approval. Post-allotment, Rare Asset Reconstruction will hold 25.82% of the expanded share capital, making it the largest single shareholder, while the promoter holding will reduce from 32.65% to 24.22%.
If approved, this will formalise the equity stake of Rare Asset Reconstruction in the company and allow listing of those shares, but it also means significant dilution for existing shareholders — promoter stake falls by about 8.4 percentage points and public/retail investors' share drops from 26.73% to just 8.80% of total capital. The outcome reflects the company's past financial distress and debt restructuring, and is unlikely to be a positive catalyst for the stock price given the dilution and the fact that a financial creditor is becoming a major shareholder.