LEEL Electricals Limited has informed the Exchange regarding Board meeting held on July 26, 2025.
Awaiting price reaction for this filing.
The board of LEEL Electricals Limited, held on July 26, 2025, approved a preferential issue and allotment of equity shares to the successful bidder (Krishna Ventures Limited) and its affiliates/nominees/strategic investors, as part of the capital restructuring following NCLT orders dated March 21, 2024 and October 23, 2024. Existing promoter shares (1,69,82,801 shares, 42.11%) have been fully cancelled to zero, and existing public shareholders' holdings have been reduced from 2,33,49,459 shares to just 5,43,011 shares (1 share for every 43 held). The company will issue 1,02,60,000 new shares at face value of ₹10 each to the acquirer group, taking total paid-up capital from ₹54.30 lakh (5,43,011 shares) to ₹10.80 crore (1,08,03,011 shares). Post-restructuring, the KVL/acquirer group will hold 94.97% voting power, while public shareholders will be left with just 5.03%.
This is a major dilution event for existing public shareholders, who will see their holdings shrink to roughly 2.3% of their previous size without any payout. The company is undergoing a complete change of control and promoter group under an IBC-driven going-concern sale to Krishna Ventures Limited, which will likely trigger a sharp repricing of the stock and possible exit challenges for small public shareholders given the drastic reduction in liquidity and free float.