NCLT Order passed dt. 02-05-2025
Awaiting price reaction for this filing.
The NCLT Hyderabad Bench has ordered the relisting of XL Energy Limited's equity shares on NSE and BSE, within 30 days, setting aside the earlier delisting order and NSE's refusal. The company had been delisted in July 2021 for non-compliance with listing rules, then admitted into insolvency (CIRP) in March 2023, with a resolution plan approved by NCLT in April 2024. The new resolution applicant consortium (Karishma Jain, Jupiter City Developers, Adwaita Navigations) had sought relisting but NSE rejected it citing a 10-year bar under SEBI Delisting Regulations. NCLT held that the IBC's overriding effect (Section 238) and the clean-slate principle (Section 32A) override SEBI's relisting bar, and that stock exchanges cannot insist on payment of past fines or penalties of the erstwhile management. The order also directed CDSL and NSDL to activate the company's ISIN and facilitate the fresh share issuance.
This is a significant positive development for existing public shareholders of XL Energy, who may soon be able to trade their shares again after being locked out since 2021. The relisting could unlock value and restore liquidity, though the company's past non-compliance history remains. Investors should watch for the actual relisting timeline and any new disclosures from the resolution applicant consortium.