Outcome of Board Meeting held on 18.06.2025 for considering the viability of operations and examine the proposal for voluntary liquidation under Section 59 of Insolvency and Bankruptcy Code, 2016
Awaiting price reaction for this filing.
The Board of Directors of Hemadri Cements Ltd met on 18 June 2025 and approved a proposal for voluntary liquidation of the company under Section 59 of the Insolvency and Bankruptcy Code (IBC), 2016. This decision is still subject to approval from shareholders through a special resolution and from creditors representing at least two-thirds in value of the company's outstanding debt. The Board also recommended appointing Mr. Rajendran Shanmugam, a registered Insolvency Professional (IBBI Reg. No. IBBI/IPA-002/IP-N0098/2017-18/10241), as the Liquidator at a mutually agreed fee. The company, a cement manufacturer based in Andhra Pradesh, has effectively decided to wind down its operations through a formal liquidation process rather than continue as a going concern.
This is a strongly negative development for shareholders. Voluntary liquidation typically means the company is shutting down, and equity holders are the last in line to receive any proceeds after all creditors are paid, often resulting in minimal or zero returns. The stock is likely to see significant selling pressure once trading resumes.