LEEL Electricals Limited has informed the Exchange regarding 'Intimation under Regulation 76 of SEBI (Depositories & Participants) Regulations, 2018'.
Awaiting price reaction for this filing.
LEEL Electricals, formerly under liquidation, was acquired as a going concern by Krishna Ventures Limited (KVL) following NCLT orders dated 21.03.2024, with the sale certificate issued on 12.06.2024 and new management taking over from 01.07.2024. As part of capital restructuring post-IBC acquisition, the entire equity holding of the erstwhile promoters was cancelled to zero without any payout, and existing public shareholders were reduced to 1 share for every 43 shares held (record date 22.11.2024). The company allotted 5,43,011 equity shares to eligible public shareholders to meet the minimum 5% public shareholding requirement under SCRR Rule 19A, and separately issued 1,02,60,000 shares on a preferential basis to the acquirer (KVL) and its affiliates/strategic investors. The company has informed exchanges that the Reconciliation of Share Capital Audit report will not serve a meaningful purpose until the capital restructuring is fully updated, as relevant corporate action forms and listing applications are still under process with depositories and stock exchanges.
Existing public shareholders have faced a massive 43:1 reduction in their shareholding with no payout, effectively wiping out nearly 98% of their holdings, while the new acquirer KVL is gaining significant control through the preferential allotment. The share capital structure is being completely overhauled as part of the post-IBC resolution process, and shareholders should expect further corporate actions and listing updates as the restructuring completes.